13. If the equation for a country's Phillips curve is π = 0.05 – 0.8(u – 0.05), where π is the rate of inflation and u is the unemployment rate, what is the short-run inflation rate when unemployment is 3 percent (0.03)? A) .066 B) -.056 C) -.066 D) .056
MA4.
13. If the equation for a country's
A) .066
B) -.056
C) -.066
D) .056
11. The
A) 2,232
B) 2,024
C) 2,400
D) 2,012
9. If policymakers announce in advance how policy will respond to various situations but then renege on their announcements, this a problem of:
A) policy by rule.
B) policy by discretion.
C) time inconsistency of policy.
D)
10. According to the sticky-
A) firms expect a high price level and the demand for goods is high.
B) the proportion of firms with flexible prices equals the proportion of firms with sticky prices.
C) the price level is above the expected price level.
D) expectations are formed adaptively, but not if expectations are formed rationally.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
