The short run Phillips curve illustrates:
A) The increase in wage rates relative to the increase in the general price level.
B) The trade-off between the unemployment rate and the inflation rate.
C) The unemployment rate relative to the civilian labor force.
D) None of the above.
Answer: B
You might also like to view...
Assume that Brazil and Mexico have floating exchange rates. All else held constant, if the price level is stable in Mexico but Brazil experiences rapid inflation then ________.
A. the Brazilian real will appreciate B. the Brazilian real will depreciate C. gold bullion will flow into Brazil D. the Mexican peso will depreciate
According to the permanent income hypothesis, consumption spending depends largely on ________
A) current income B) the savings rate C) a consumer's lifetime resources D) the level of current income plus the value of the assets owned by the household
Changes in which of the following will cause a change in exchange rates?
A) real interest rates B) consumer preferences C) perceptions of economic and political stability D) all of the above
If the price of an input falls, a firm would increase the use of that input for two reasons:
a. The input is now more productive, and the firm can substitute this input for other relatively more expensive inputs. b. The input is now more productive, and overall production costs are now lower, meaning a firm may choose to increase production. c. Overall production costs are now lower and the firm can substitute this input for other relatively more expensive inputs. d. Overall production costs are now lower and the firm will have more of other inputs to use with the one in question.