The Phillips Curve depicts that, in general:
A. high amounts of unemployment in an economy will coincide with low inflation.
B. low amounts of unemployment in an economy will coincide with low inflation.
C. high amounts of unemployment in an economy will coincide with high inflation.
D. high amounts of output in an economy will coincide with low inflation.
A. high amounts of unemployment in an economy will coincide with low inflation.
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Third-degree price discrimination is more common in service industries because ________.
A. all firms in these industries have significant monopoly power over price B. low price buyers will find it virtually impossible to resell the products of such industries to high price buyers C. the costs of providing such industries' products to different groups of buyers vary dramatically D. the price elasticity of demand is the same for all groups of buyers in these industries
Economists and psychologists are often on opposite sides of the economic growth debate. The nature of the debate is such that
a. economists emphasize the benefits of growth to finance valuable programs, and psychologists question whether more goods make people happier. b. economists emphasize that more money means more income for the government, and psychologists believe poorer people are happier. c. economists believe that economic growth imposes no serious costs on the economy, and psychologists question the statistical reliability of GDP numbers. d. economists stress the importance of money relative to leisure, and psychologists stress the importance of an unstructured life.
The “yardstick” people use to post prices and record debts is called
a. a unit of account. b. liquidity. c. a medium of exchange. d. a store of value.
Over long periods of time, the growth rates of actual and potential GDP have been
A. diverging. B. similar. C. declining together. D. usually far apart.