Suppose a middle-class tax cut increases consumption expenditures. Which of the following would you expect to occur as a result of this change?
a. The economy will move up and to the left along the short-run Phillips Curve.
b. The economy will move down and to the right along the short-run Phillips Curve.
c. The short-run Phillips Curve will shift to the left
d. The short-run Phillips Curve will shift to the right.
a
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Given the information in the table above, if the world equilibrium price of widgets were 4 cloth, then
A) both countries could benefit from trade with each other. B) neither country could benefit from trade with each other. C) each country will want to export the good in which it enjoys comparative advantage. D) neither country will want to export the good in which it enjoys comparative advantage. E) both countries will want to specialize in cloth.
If a cartel is unable to monitor its members and punish those firms that violate their agreement, then
A) the member firms will each act as price setters. B) the cartel will prosper in the long run. C) the market will become a monopoly. D) the cartel will fail.
(a) In which year did disinflation begin? (b) In which year did deflation begin?
The role that prices play in distributing scarce goods and services to those consumers who value them the most highly is known as the ________ function of price.
A. multiplicative B. allocative C. rationing D. equilibrium