The long-run upward-sloping aggregate demand curve implies an upward-sloping Phillips curve; thus, there is a tradeoff between inflation and unemployment in the short run when it comes to government policy.
Select whether the statement is true or false.
A. True
B. False
B. False
This statement is false. The short-run upward-sloping aggregate supply curve implies a downward-sloping Phillips curve; thus, there is a tradeoff between inflation and unemployment in the short run when it comes to government policy.
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
In Figure 3-7 above, the multiplier effect does NOT explain
A) the increase in equilibrium income. B) the increase in induced saving. C) the increase in AP. D) all of the above.
From the expected value of a game, we
A) cannot determine the risk. B) can determine the risk. C) can determine exactly how much a player will receive. D) can infer the subjective probabilities of each possible outcome.
Golden Rule of Cost Minimization - to minimize cost, the firm should employ inputs in such a way that the _______________ per dollar spent is equal across all inputs.
Fill in the blank(s) with the appropriate word(s).