What is the difference between the short-run Phillips curve and the long-run Phillips curve?
a. The long-run Phillips curve is horizontal, indicating that the unemployment rate may change but inflation remains the same, whereas the short-run curve is vertical.
b. The long-run Phillips curve slopes upward, indicating a positive relationship between the unemployment rate and inflation, whereas the short-run curve slopes downward.
c. The long-run Phillips curve is vertical, indicating that the unemployment rate may change but inflation does not, whereas the short-run curve is positively sloped.
d. The long-run Phillips curve is vertical, indicating that inflation may change but the unemployment rate does not, whereas the short-run curve is negatively sloped.
e. The long-run Phillips curve is negatively sloped, indicating an inverse relationship between unemployment and inflation, whereas the short-run curve is vertical.
d
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Explain why the long-run total cost curve, not the short-run total cost curve, shows the lowest cost of producing any level of output. Is there an exception?
What will be an ideal response?
In 2010, which of the following was true regarding the extremely large deficits that the U.S. recently encountered?
a. Most politicians and economists argued that the deficit had to be reduced. b. Most politicians argued that the deficit had to be reduced but economists cautioned against this course of action. c. Most economists argued that the deficit had to be reduced but politicians cautioned against this course of action. d. Both politicians and economist cautioned against deficit reduction.
Where does the World Bank get its funds?
A. from tariffs collected on goods traded internationally B. from governments of the wealthiest nations and from private financial markets C. from printing its own money D. from seizing dead capital in developing nations and selling it at auction
If the economy is operating in the intermediate range of the aggregate supply curve, then the greater the rate of growth of aggregate demand the:
A. Greater the resulting increase in the price level, the greater the rate of growth of output, and the greater the unemployment rate B. Greater the resulting increase in the price level, the lower the rate of growth of output, and the greater the unemployment rate C. Less the resulting increase in the price level, the lower the rate of growth of output, and the greater the unemployment rate D. Greater the resulting increase in the price level, the greater the rate of growth of output, and the lower the unemployment rate