A rightward shift of the Phillips curve implies an increase in both unemployment and inflation.
Answer the following statement true (T) or false (F)
True
A rightward shift of the Phillips curve is associated with a leftward shift in the AS curve, resulting in higher unemployment and inflation.
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GDP divided by the population gives us
A) the price level. B) the GDP deflator. C) per capita GDP. D) real GDP. E) none of the above.
Refer to Figure 9.5. If the government establishes a price floor of $2.50, consumer surplus will
A) fall by $50. B) fall by $150. C) remain the same. D) rise by $50. E) rise by $150.
When price is above marginal cost, selling one more unit at the current price will increase profit. This concept is known as the
a. income effect. b. price effect. c. output effect. d. cartel effect.
A production function tells you, given the inputs, what the output will be.
Answer the following statement true (T) or false (F)