Reference no: EM13183539
1. If the sacrifice ratio was 4.5, what would be the reduction in output required to reduce inflation from 6 percent to 4 percent?
A. 2 percent
B. 4.5 percent
C. 9 percent
D. 18 percent
E. 27 percent
2. Which of the following statements about inflation is false?
A. Disinflation is defined as a reduction in the rate of inflation.
B. Policymakers can exploit a trade-off between inflation and unemployment in the short run but not in the long run.
C. Unemployment rates below the natural rate of unemployment are difficult to achieve in the short run, but easy to achieve in the long run.
D. The sacrifice ratio is the number of percentage points annual output falls for each percentage point reduction in inflation.
E. In the long run, the inflation rate depends primarily on the money supply growth rate.
3. Which of the following statements about economic policy changes is false?
A. Stabilization policy suffers from time lags between the recognition of the problem and the actual effects of the policy.
B. An argument cited against stabilization policy is that too often the stabilizing "fix" does more harm than good.
C. Arguments in favor of committing the central bank to a policy of zero inflation include the notion that inflation results in arbitrary redistributions of wealth.
D. Double taxation means that both the profits of corporations and the dividends shareholders receive are taxed, which is currently the case in the United States.
E. Proponents of tax-law changes to encourage saving would argue that corporate tax rates should be increased.
4. The costs of government budget deficits include
A. higher interest rates.
B. elimination of public savings.
C. a decrease in private investment.
D. redistribution of future wealth.
E. all of the above.
|
State the reaction of iodide ions with peroxydisulfate ions
: The reaction that occurs here is the reaction of iodide ions with peroxydisulfate ions to produce iodine molecules and sulfate ions. Write the balanced net ionic equation for this reaction.
|
|
Explain the amount of carbon dioxide in a gaseous mixture
: The amount of carbon dioxide in a gaseous mixture of CO2 and CO can be determined by passing the gas into an aqueous solution that contains an excess of Ba(OH)2
|
|
Show that despite a large unemployment migration continue
: Show your steps. B. After the equilibrium is reached, suppose 100,000 new jobs are created, causing 200,000 new migrants to enter the city. Does the equilibrium rate change? What is the new rate of urban unemployment right after the new migrants h..
|
|
What would be the deadwieght loss associated
: Suppose the demand for Cardinal's World Series tickets is Qd = 48, 061 ? 2.4P (for the purposes of this problem, we will suppose that fans do not care where they sit). The Cardinals play at Busch Stadium, which has a seating capacity of 46,861. Th..
|
|
What is the costs of government budget deficits
: Disinflation is defined as a reduction in the rate of inflation. B. Policymakers can exploit a trade-off between inflation and unemployment in the short run but not in the long run. C. Unemployment rates below the natural rate of unemployment are di..
|
|
Determine reduction in the money supply
: Which of the following statements about unemployment and inflation is false? A. The short-run Phillips curve demonstrates a negative relationship between unemployment and inflation, whereas the long-run Phillips curve is horizontal because the nat..
|
|
Describe how no crowding-out effect exists
: If the marginal propensity to consume equals 0.75, a $6,000,000 increase in government purchases will result in what increase to total output, assuming no crowding-out effect exists? A. $4,500,000 B. $6,000,000 C. $8,000,000 D. $24,000,000 E. $1,50..
|
|
Explain the supply-side economics
: Which of the following is an example of "supply-side economics"? A. an investment tax credit B. a one-time tax rebate to low-income families C. a new Medicare drug benefit for the elderly D. an increase in Social Security benefits E. all of the above
|
|
Write a formal business letter to ben
: Write a formal business letter to Ben answering their questions and provide specific references to the GAAP Codification sections used to arrive at your answers.
|