Observations of inflation in the 1970s prompted what further addition to the Phillips curve?
A) price shocks
B) expected inflation
C) personal consumption expenditures
D) all of the above
E) none of the above
A
You might also like to view...
The greater the tax wedge, the ________ the amount of employment and the ________ potential GDP
A) larger; smaller B) smaller; smaller C) smaller; larger D) larger; larger E) None of the above because the tax wedge does not affect employment or potential GDP.
In situations in which prices cannot be used to signal relative scarcities of goods, which of the following can serve as a rationing mechanism?
A) queuing B) political power C) random assignment D) all of the above
Assume Joe invests a total of $10,000 in a company—$5,000 of which is his own money and $5,000 of which he borrowed at a 10 percent interest rate. If the company’s stock value increases by 20 percent in one year at which time Joe sells his shares of the stock, what is Joe’s rate of return on his investment?
A. 10 percent B. 15 percent C. 20 percent D. 30 percent
Which of the following statements is true?
a. Economic profits ignore implicit costs and revenues. b. Although implicit costs do not show up in accounting profits, they nevertheless affect managerial decisions. c. Although explicit costs do not show up in accounting profits, they nevertheless affect managerial decisions. d. Economists consider sunk costs in their decision making