The law of increasing opportunity costs causes the production possibilities curve to:
a. be a straight line. b. slope upwards.
c. have a bowed-out shape. d. shift inward.
c
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The unemployment rate ________
A) is essentially unchanged over the business cycle B) rises in economic expansions and falls in economic contractions C) falls consistently over both economic expansions and recessions D) varies over the course of the business cycle
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.
All of the following are market determinants of exchange rates EXCEPT
A) changes in productivity in one country relative to another. B) changes in real interest rates in one country relative to another. C) changes in product preferences between countries. D) changes in the relative prices of goods and services within a country.
The traditional Phillips curve suggests a conflict or tradeoff between
A. price level stability and income equality. B. the level of unemployment and price level stability. C. unemployment and income equality. D. economic growth and full employment.