Which of the following statements best describes the nature of the Phillips curve?
a. A downward-sloping Phillips curve should be interpreted as valid for long-run periods of several years, but over shorter periods, when aggregate supply shifts, the downward-sloping Phillips curve can shift so that unemployment and inflation are both higher or both lower.
b. A downward-sloping Phillips curve should be interpreted as valid for short-run or longer periods, but when aggregate supply shifts, the downward-sloping Phillips curve can shift so that unemployment and inflation are both higher or both lower.
c. A downward-sloping Phillips curve should be interpreted as valid for short-run periods of several years, but over longer periods, when aggregate supply shifts, the downward-sloping Phillips curve can shift so that unemployment and inflation are both higher or both lower.
d. A downward-sloping Phillips curve should be interpreted as valid for short-run periods of several years, but over longer periods, when aggregate supply shifts, the downward-sloping Phillips curve can shift so that either unemployment or inflation may become higher or lower.
c. A downward-sloping Phillips curve should be interpreted as valid for short-run periods of several years, but over longer periods, when aggregate supply shifts, the downward-sloping Phillips curve can shift so that unemployment and inflation are both higher or both lower.
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When quantity demanded increases at every possible price, the demand curve a. shifts to the left
b. shifts to the right. c. there is a movement along the given demand curve. d. none of the above.
When actual output exceeds potential output there is ________ output gap and the rate of inflation will tend to ________.
A. no; remain the same B. an expansionary; decrease C. an expansionary; increase D. a recessionary; increase
Which of the following statements concerning the distinction between positive and normative economics is TRUE?
A) Positive statements are concerned with what is, while normative statements are concerned with what someone thinks should be. B) Positive statements are concerned with what people think, while normative statements are concerned with what people do. C) Positive statements are true while normative statements are false. D) Positive statements are concerned with what is while normative statements are concerned with what will be.
Professional athletes attempting only to maximize income will defer larger salaries if:
A. deferred payouts are adjusted upward to compensate for forgone interest. B. it increases the team's chance to win. C. there is no chance of inflation. D. it allows them to stay in a city and not to have to move their family.