A negative supply shock causes stagflation in the short run.

True

False

Milton Friedman argued "sweatshops" benefit workers by providing an opportunity to work in such factories.

True

False

In the Keynesian view, a leftward shift in Aggregate Demand does NOT lead to falling prices since the short run Aggregate Supply curve is vertical.

True

False

If loans are given at fixed interest rates, then if inflation rate is higher than expected when a loan was given, real income is redistributed from lenders to borrowers.

True

False

There is uncertainty about the precise level of the natural rate of unemployment.

True

False

If "the" relevant interest rate is 3%, then present value of $40 received in one year is closest to:

$48.00

$38.83

$49.02

$50.98

$41.17

R. Glenn Hubbard has never been Chair of the Federal Reserve Board.

True

False

Total Factor Productivity tends to rise in and expansion and fall in a recession.

True

False