How can the difference between the current unemployment rate and the natural rate of unemployment help explain changes in inflation?
How do expectations of higher inflation become embedded in the economy and affect actual inflation?
A closed economy is one in which
A) investment spending is zero.
B) government spending is zero.
C) there are no imports or exports.
D) demand equals supply in every market.
In a closed economy,the total quantity of goods demanded equals the sum of
A) consumption spending, investment spending, and government spending.
B) consumption spending, national saving, and taxes.
C) consumption spending, government spending, and taxes.
D) investment spending, national saving, and taxes.