Something that would cause the long-run aggregate supply curve to shift to the right would be the:
A. unemployment rate decreasing.
B. discovery of a new oil reserve.
C. inflation rate decreasing.
D. The long-run aggregate supply curve is fixed, and does not shift.
B. discovery of a new oil reserve.
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The Phillips curve shows
A) a positive relationship in the long run between the rate of inflation and the rate of unemployment. B) a negative relationship between the inflation rate and the unemployment rate, at least in the short run. C) a positive relationship between contractionary monetary policy and higher price levels. D) a positive relationship between price stability and constant, small-increment changes in the fiscal policy on the part of the Fed.
The law of increasing opportunity costs is a result of the fact that:
A) the value of the dollar has declined over time. B) wage rates rise as the economy reaches full employment. C) consumers tend to value a good more when they don't have much of it. D) resources are not equally productive in all output categories.
The FDIC is an example of:
A. risk premium. B. a Federal Reserve Bank tool. C. the Glass-Steagall Act D. deposit insurance.
Wilson can produce a maximum of 6 volleyballs (VBs) or 18 footballs (FBs). Spalding can produce a maximum of 8 VBs or 32 FBs. Which of the following is true?
a) Spalding has an absolute advantage in producing FBs. b) Spalding has an absolute advantage in producing VBs. c) Spalding has a comparative advantage in producing VBs. d) All of the above are true. e) A and B are true.