Where does the short-run Phillips curve intersect the long-run Phillips curve?
A) at the point where actual inflation is equal to expected inflation
B) at the point where the rate of inflation and the unemployment rate are equal
C) at the natural rate of inflation
D) There is no intersection between the short-run and long-run Phillips curves.
A
You might also like to view...
Measured between two points on a curve, the ratio of the change in the variable on the vertical axis to the change in the variable on the horizontal axis is the:
a. axis. b. slope. c. dependent curve. d. independent curve.
Which of the following conditions is most essential if a firm is going to earn long-run economic profits?
a. an inelastic market demand for the product b. a small number of firms, even though competitors are free to enter the industry c. a differentiated product d. restrictions that limit the entry of potential competitors into the industry
Suppose a tax of $1 per unit is imposed on a good. The more elastic the supply of the good, other things equal, the
a. smaller is the response of quantity supplied to the tax. b. larger is the tax burden on sellers relative to the tax burden on buyers. c. larger is the deadweight loss of the tax. d. All of the above are correct.
A hailstorm kills all of the wheat in Minnesota. What will happen to the price and quantity of wheat sold in the U.S.?
A. Equilibrium price falls, equilibrium quantity falls. B. Equilibrium price rises, equilibrium quantity falls. C. Equilibrium price rises, equilibrium quantity rises. D. Equilibrium price falls, equilibrium quantity increases.