Which of the following is correct concerning the long-run Phillips curve?
a. Its position is determined primarily by monetary factors.
b. If it shifts right, long-run aggregate supply shifts right.
c. It cannot be changed by any government policy.
d. Its position depends on the natural rate of unemployment.
d
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Assume that the foreign exchange market is in equilibrium and there are no arbitrage opportunities. If the market price of 200 rubles is $1, and the market price of one yen is 2 rubles, how many yen can you buy with $4?
a. 200 b. 2,000 c. 400 d. 4,000 e. 100
Advocates of an unregulated market system argue that
A. competition promotes efficiency. B. competition leads to product variety and quality. C. competition leads to innovation. D. all of the above.
Tom Searchinger, a senior attorney at the Environmental Defense Fund, observed that generous farm subsidies have encouraged farmers to produce more corn and more wheat. How does this affect the market for fertilizer?
A) The supply of fertilizer increases. B) The demand for fertilizer increases. C) The supply of fertilizer decreases. D) The demand for fertilizer decreases.
An advantage of a functional division is that performance is
a. More easily measured b. More difficult to measure c. Not measured d. None of the above