.The U.S. economic goal is to... a.Keep the rate of inflation under 3% b.Maintain zero inflation at all times c.Keep inflation at zero, unless unemployment increases d.Not consider inflation when evaluating the economy

Price stability refers to... a.A widely fluctuating average price level b.The absence of dramatic changes in the average price level c.An inflation rate of zero d.Increases in prices match the growth rate of GDP exactly

As the economy falls from a peak into a valley in the business cycle, cyclical unemployment should increase, and real GDP should decline. a.True b.False

Suppose at the start of the year you got a salary increase of 5% from your employer. If the prices of goods & services you normally purchase increased 5% during the year, you would figure out that for the year you have experienced... a.Higher real income and higher nominal income b.Higher real income but lower nominal income c.No change in nominal income d.No change in real income

The labor demand curve is downward sloping because... a.Each individual worker tends to be more valuable as more workers are hired b.Each individual worker tends to be less valuable as more workers are hired c.Marginal physical product increases as more workers are hired d.The amount of available labor decreases as the wage rate increases

Movie and sports stars are paid high endorsement fees by companies because their... a.Agents insist on it b.MPP is very low c.MRP is very high d.None of the above