In the last half of the 1990s, the usual short-run trade-off between inflation and unemployment did not arise because:
A. the Fed held interest rates constant.
B. the federal government balanced its budget.
C. the U.S. personal savings rate rose.
D. productivity (and thus aggregate supply) grew faster than previously.
D. productivity (and thus aggregate supply) grew faster than previously.
You might also like to view...
Profits will be maximized when the slope of the total revenue curve and the slope of the total cost curve equal zero.
Answer the following statement true (T) or false (F)
In the short run, if a firm shuts down, its loss is equal to
a. $0 b. its variable costs c. its fixed costs d. fixed costs minus variable costs e. fixed costs minus total revenue
Suppose that the price of macaroni drops. Quantity supplied will ________ and producer surplus will ________.
A. increase; increase B. increase; decrease C. decrease; increase D. decrease; decrease
The Total Cost Function in the book
A. is U-shaped. B. is shaped as an upside down U. C. begins by sharply rising, flattens out, then sharply rises again. D. is an up-ward sloping straight line.