An increase in the natural rate of unemployment shifts the long-run Phillips curve to the right
a. True
b. False
Indicate whether the statement is true or false
True
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The distribution of income in the United States is characterized by the following relationship between the mean, median, and mode incomes
A) mean income < median income < mode income. B) mode income < median income < mean income. C) median income < mean income < mode income. D) mode income < mean income < median income.
Market systems can be evaluated as efficient or inefficient, but not as fair or unfair
a. True b. False Indicate whether the statement is true or false
Entry of new firms in monopolistically competitive industries can convey a negative externality on producers because firms lose customers and profits from the entry of new competitors. This externality is called the
Which is a correct statement?
A. Demand-pull inflation will continue so long as there is excess total spending in the economy. B. It is relatively easy to distinguish between cost-push and demand-pull inflation even if you don't know the source of the inflation. C. A supply shock will cause a variation of demand-pull inflation that can lead to hyperinflation. D. Cost-push inflation will continue because increased per-unit cost will lead to a reduced supply.