Moving along the short-run Phillips curve, as the unemployment rate increases, the inflation rate
A) initially increases and then decreases.
B) remains unchanged.
C) increases.
D) decreases.
E) initially decreases and then increases.
D
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The long-run aggregate supply curve will shift to the left when
A) technology improves. B) new sources of oil are discovered. C) the price level increases. D) population decreases.
Only about a quarter of the population eligible for housing subsidies actually receives them.
A. True B. False C. Uncertain
Although the long-run equilibrium price of oil is $80 per barrel, some producers have much lower costs because their oil reserves are relatively close to the surface and are easier to extract
If the low-cost producers have a minimum LAC equal to $20 per barrel, then the difference ($60 per barrel) is: A) an above-normal economic profit. B) an economic rent due to the scarcity of low-cost oil reserves. C) a profit that will go to zero as new oil producers enter the market. D) none of the above
Suppose that a new seed technology improves corn yield by 20%. What is the market effect of that new technology?
A. A shift to the left of the supply curve that causes an increase in the price of corn. B. A shift to the left of the demand curve that causes a decrease in the price of corn. C. A shift to the right of the demand curve that causes an increase in the price of corn. D. A shift to the right of the supply curve that causes a decrease in the price of corn.