When the aggregate demand curve shifts,
A) the inflation rate does not change.
B) there is a movement along the short-run Phillips curve.
C) there is a change in potential GDP.
D) there is a change in the natural unemployment rate.
E) the short-run Phillips curve shifts.
B
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Welfare economics is the study of how
a. the allocation of resources affects economic well-being. b. a price ceiling compares to a price floor. c. the government helps poor people. d. a consumer's optimal choice affects her demand curve.
Which of the following is a final good or service?
A) tires purchased by Ford for use on one of their SUVs B) the new economics textbook you are using C) the hair gels used by a hairstylist at the local hair salon D) the butter used by a chef to make buttercream frosting E) the taco shells purchased by Taco Bell for use in their tacos
Compare how money was backed in the past with how it is backed today and explain what prompted this change.
What will be an ideal response?
The real costs of inflation to society include:
A. lost purchasing power of income. B. an increase in the general level of prices. C. interference with long-term planning. D. higher relative prices.