According to the "self-correcting mechanism" in the AD-AS framework, ________
A) the aggregate demand curve shifts up or down as needed to bring the economy to full employment
B) the inflation rate changes as needed to move the economy along the short-run aggregate supply curve until output is at potential output
C) the long-run aggregate supply curve shifts until it intersects both the aggregate demand and short-run aggregate supply curves at a single point
D) inflation and expected inflation are unaffected by deviations of output from potential output
E) none of the above
E
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Refer to Figure 1-4. Which of the following statements is true?
A) The slope of the tangent at E and the slope of the tangent at F are negative. B) The slope of the tangent at E is positive and the slope of the tangent at F is negative. C) The slope of the tangent at E is negative and the slope of the tangent at F is positive. D) The slope of the tangent at E and the slope of the tangent at F are positive.
Consumers face a higher tax burden when demand is more elastic, other things constant
a. True b. False Indicate whether the statement is true or false
Some economists argue that the recent relatively high rate of unemployment has resulted in part from the fact that a part of the workforce has not made the adjustment to new technologies
Indicate whether the statement is true or false
The imposition of a per unit tax on a product
A. will cause the supply curve to shift upward and to the left. B. will cause the supply curve to shift downward and to the right. C. will reduce the quantity supplied of the product. D. will encourage producers to increase the quantity supplied of the product.