Suppose the Phillips curve is represented by the following equation: pi subscript t minus pi subscript t minus 1 end subscript equals 20 minus 2 u subscript t Given this information, which of the following is most likely to occur if the actual unemployment in any period is equal to 6%? 1. the rate of inflation will be constant
2. the rate of inflation will tend to increase
3. the rate of inflation will tend to decrease
4. none of the above

Amanda works as an industrial designer

Suppose you win a small lottery and have the choice of two ways to be paid: you can accept the money in a lump sum or in a series of payments over time. if you pick the lump sum, you get $2,950 today. if you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. 1) at an interest rate of 6% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 2) at an interest rate of 9% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 3) years after you win the lottery, a friend in another country calls to ask your advice. by wild coincidence, she has just won another lottery with the same payout schemes. she must make a quick decision about whether to collect her money under the lump sum or the payments over time. what is the best advice to give your friend? a) the lump sum is always better. b) the payments over time are always better. c) it will depend on the interest rate; advise her to get a calculator. d) none of these answers is good advice.

What happens when the government finances a job creation project through taxes and borrowing?