What does a vertical Phillips curve in the long run imply?
a. In the long run, the rate of unemployment will converge toward zero.
b. Higher inflation does not permanently reduce the rate of unemployment.
c. Higher inflation increases the rate of unemployment
d. Higher inflation lowers the rate of unemployment.
b
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In Figure 4-18, there would be a shortage of T-shirts if the price were
A. $10 and the market price will rise. B. $8 and the market will tend toward equilibrium. C. below $8 and the shortage persists. D. between $8 and $6 and the shortage will get larger.
At the time policymakers debated the Trans-Pacific Partnership, the United States imposed ________ on the value of imported shoes and shoe parts
A) tariffs of 1.5 to 12.5 percent B) tariffs of 95 percent C) no tariffs D) tariffs of 25 to 67.5 percent
The conclusion that a monopoly results in lower output and higher prices than perfect competition relies on the assumption that
A) the demand curve for a monopoly is horizontal. B) consumers are ignorant of the effects of monopoly. C) the costs of production are the same whether the industry is perfectly competitive or a monopoly. D) elasticity of demand varies along the market demand curve.
If the MPC = 0.75 and a household obtains $50,000 more dollars then how much would the household spend of the additional $50,000?
A. $50,000 B. $12,500 C. $37,500 D. $40,000