Refer to Figure 17-3. The shifts shown in the short-run and long-run Phillips curves between period 1 and period 2 could be explained by

A) an increase in the natural rate of unemployment from 5.5 to 6.8 percent.
B) an increase in the expected inflation rate from 4.0 to 5.5 percent.
C) either an increase in expected inflation from 4.0 to 5.5 percent or an increase in the natural rate of unemployment from 5.5 to 6.8 percent.
D) None of the above is correct.


A

Economics

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Suppose that the demand curve for apples is downward sloping and the price per bushel increases from $6.50 to $7.50. We would then expect

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Supply curves applicable to shorter periods of time tend to:

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Economics

The Arrow impossibility theorem shows that

a. democracy should be abandoned as a form of government. b. it is impossible to improve upon democratic voting methods as a mechanism for social choice. c. all voting systems are flawed as a mechanism for social choice. d. the median voter's preferences will always win in a two-way vote.

Economics