If expected inflation decreases does the short-run Phillips curve shift? If so, what direction does it shift? Does the long-run Phillips curve shift? If so, what direction does it shift?
If expected inflation decreases the short-run Phillips curve shifts left. The long run Phillips curve does not shift.
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Suppose the demand for barley is perfectly elastic. The supply curve of barley is upward sloping. If a tax is imposed on barley,
A) barley sellers pay the entire tax. B) barley buyers pay the entire tax. C) the government pays the entire tax. D) the tax is split evenly between barley buyers and sellers. E) who pays the tax depends on whether the government imposes the tax on barley sellers or on barley buyers.
Generally, opportunity costs increase and the production possibilities frontier bows outward. Why?
A) Unemployment is inevitable. B) Resources are not equally useful in all activities. C) Technology is slow to change. D) Labor is scarcer than capital.
In monopolistic competition, advertising costs
A) are fixed costs. B) are variable costs. C) affect the firm's ATC curve. D) All of the above answers are correct.
If marginal revenue exceeds marginal cost in the short run, total revenue for the perfectly competitive firm is greater than total cost
a. True b. False Indicate whether the statement is true or false