Figure 33-6
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Figure 33-6 (b) illustrates that
A. in the short run, it is possible to “ride the Phillips curve” down toward lower rates of inflation.
B. in the short run, it is possible to “ride the Phillips curve” up toward lower unemployment by stimulating aggregate demand.
C. the Phillips curve connecting points g, e, and r is not a menu of policy choices.
D. All of these responses are correct.
Answer: D
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Use the following graph to answer the next question.
Other things equal, a shift of the aggregate supply curve from AS0 to AS1 might be caused by a(n) ________.
A. decrease in aggregate demand B. increase in productivity C. decrease in nominal wages D. increase in government regulation
Scarcity can best be defined as a situation in which
A) there are no buyers willing to purchase what sellers have produced. B) there are not enough goods to satisfy all of the buyers' demand. C) there is more than enough money to satisfy consumers' wants. D) the resources we use to produce goods and services are limited.
If advertising makes a firm's demand curve more inelastic, it is probably because
a. the advertising backfired b. the goods advertised are no longer differentiated c. competitors raised their prices in response to the firm's advertising d. brand loyalty to the firm's good increased e. quality changes make the good more attractive
About one out of every ________ white children under the age of 18 is poor.
Fill in the blank(s) with the appropriate word(s).