Which of the following is true of the shape of the short-run Phillips curve?
a. It is vertical
b. It is horizontal.
c. It is downward sloping.
d. It is upward sloping.
c
You might also like to view...
Transfer payments include:
a. government spending on tanks and planes. b. government spending on national forests and parks. c. the salaries of senators and federal judges. d. welfare benefits and Social Security payments.
In hindsight, mortgage-backed securities implied very limited risk because the underlying mortgages were spread across different geographic areas
a. True b. False Indicate whether the statement is true or false
If the United States unilaterally removed all of its trade restrictions and moved toward a policy of free trade, international trade theory indicates that
a. U.S. residents would gain, but people in other countries would be worse off. b. people in other countries would gain, but U.S. residents would be worse off. c. both U.S. residents and people in other countries would be able to achieve higher income levels. d. the average income level would be lower in both the United States and other countries.
In the short run, a decrease in wage rates, ceteris paribus, shifts the
A) AD curve to the right, causing equilibrium price level to rise and equilibrium Real GDP to increase. B) AD curve to the left, causing equilibrium price level to fall and equilibrium Real GDP to decrease. C) SRAS curve to the right, causing equilibrium price level to fall and equilibrium Real GDP to increase. D) SRAS curve to the left, causing equilibrium price level to rise and equilibrium Real GDP to decrease.