The price level in the economy between 2014 and 2015 rose from 100 to 105. Between 2015 and 2016, the price level rose from 105 to 110.25. How does the short-run Phillips curve predict the unemployment rate will change as a result?
A) The unemployment rate will increase since inflation increased.
B) The unemployment rate will decrease since inflation increased.
C) The unemployment rate will decrease since inflation decreased.
D) The unemployment rate would not change since there is no change in the rate of inflation.
D
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When talking about demand, price elasticity refers to the
a. price flexibility in response to demand changes. b. adaptability of suppliers to price changes. c. responsiveness of buyers to price changes. d. ability to stretch one’s budget by making wise choices.
According to the H-S definition of income, employer contributions are excluded from money income.
A. True B. False C. Uncertain
A recession can be expected to reduce inflation in the economy if the recession is caused by a(n)
a. increase in aggregate demand. b. increase in aggregate supply. c. decrease in aggregate demand. d. decrease in aggregate supply.
If the own-price elasticity of demand is -1.25, in order for the manufacturer of Ragu to increase total revenue, at least in the short run, it would be advisable to
A) Can't tell; insufficient information B) Raise the price of Ragu. C) Lower the price of Ragu. D) Do nothing.