Compared to the price of long-distance telephone calls, college tuition in the United States has
a. fallen.
b. risen.
c. stayed the same.
d. risen at the same rate as the CPI.
b
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Monetary policy can
A) shift the short-run trade-off between inflation and unemployment if it affects expected inflation. B) shift the long-run trade-off between inflation and unemployment through changes in cyclical unemployment. C) shift both the short-run and long-run trade-offs between inflation and unemployment if changes in policy are credible. D) shift neither the short-run nor long-run Phillips curve trade-offs between inflation and unemployment.
Monopoly and monopsony markets have low barriers to entry.
a. true b. false
Which of the following reasons helps explain why the aggregate demand curve is downward sloping?
A. The real balances effect or wealth effect: Consumers spend more on goods and services when the price level falls because lower prices increase consumer purchasing power. B. The producer-push effect: At less than full employment, increases in quantity demanded will raise price, and thus will motivate sellers to produce more. C. The hidden inflation effect: As the price level rises, consumers fail to recognize that prices are higher, and consequently they fail to reduce expenditures on goods and services. D. The cost-pull effect: As costs of production rise, consumers are pulled to buy more of the products they want most.
Why is it difficult to estimate job gains or losses due to free trade agreements?
What will be an ideal response?