If actual inflation differs from expected inflation, what is the slope of the aggregate supply curve?
A. The slope is horizontal in the short and long run.
B. The slope is vertical in the short and long run.
C. The slope is vertical in the short run and upward sloping in the long run.
D. The slope is upward sloping in the short run and vertical in the long run.
Answer: D
You might also like to view...
The following data give the dates of successive turning points in U.S. economic activity and the corresponding levels of real GDP at the time.Turning PointDateReal GDP(1996 $ billions) (A)July 19531992.2(B)May 19541941.0(C)Apr. 19572182.7(D)Apr. 19582117.4(E)Apr. 19602391.0Which of the turning points are peaks?
A. (A), (B), and (C) B. (A), (C), and (E) C. (B) and (D) D. (C), (D), and (E)
By the third quarter of 2011, U.S. households had accumulated $6.2 trillion in housing equity, which represents about 11 percent of their net worth. What proportion of U.S. households own their home?
A. one-third B. one-half C. two-thirds D. three-fourths
An In the News article is titled "Where Do Start-ups Get Their Money?" Venture capital is important to an economy because it
A. Slows the growth of technology, which serves as an important correction for the economy. B. Increases the pace of innovation and economic growth. C. Slows the pace of innovation and economic growth. D. Helps keep inefficient firms out of the industry.
Give an example of how money is often handled when interest rates are high.
What will be an ideal response?