Economic stabilization is best achieved by
a. fixing a tolerable point on the Phillips curve and staying there
b. moderate shifts in the Phillips curve during periods of inflation
c. moderate shifts in the Phillips curve during periods of unemployment
d. fixing a tax rate that generates maximum tax revenue
e. allowing the business cycle to run its course without government interference
A
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In price-taker markets, individual firms have no control over price. Therefore, the firm's marginal revenue curve is
a. a downward-sloping curve. b. indeterminate. c. constant at the market price of the product. d. precisely the same as the firm's total revenue curve.
The price at which a good or service is traded on international markets is called the ________ price.
A. universal B. international C. market D. world
The long-run aggregate supply curve shifts to the right when ______, ceteris paribus.
a. producers are willing to supply less real output b. firms experience relatively constant input costs c. greater output is achieved on a sustainable basis d. workers believe that the price level is going to increase
Economists believe that money demand determines the price level in the long run.
Answer the following statement true (T) or false (F)