A favorable supply shock will cause inflation to
a. rise and shift the short-run Phillips curve right.
b. rise and shift the short-run Phillips curve left.
c. fall and shift the short-run Phillips curve right.
d. fall and shift the short-run Phillips curve left.
d
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The analytical framework in which two or more firms compete for certain payoffs that depend on the strategy that the others employ is
A) game theory. B) the concentration ratio. C) a horizontal merger. D) network effect.
When a country imposes an import quota, its
a. net exports rise and its real exchange rate appreciates. b. net exports rise and its real exchange rate depreciates. c. net exports fall and its real exchange rate depreciates d. None of the above is correct.
A circular flow diagram traces the flows of inputs and outputs between:
A. households and the government. B. households and firms. C. households in one country and households in another country. D. firms in one country and households in another country.
Supposing the market price for a price taking firm is known to be $10, the total revenue accruing to it if it sells 100 is ________ and the total revenue accruing to it if it sells 200 is ________.
A. $1000; $2000 B. $10; $10 C. $100; $200 D. $1000; $1000