According to the Phillips curve, in the short run, if policymakers choose an expansionary policy to lower the rate of unemployment, the economy will experience an increase in inflation.
Answer the following statement true (T) or false (F)
True
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Every time you go to the grocery store, you try to wait in the shortest line. But the lines always seem to be roughly the same length. Why?
A. The cashiers work at the same speed. B. Other people are trying to choose the shortest line too. C. Random chance equalizes the length of the lines. D. The cashiers do not have an incentive to work faster.
A bank run __________ possibly mushroom into a bank panic because the quality of a bank's portfolio of loans __________ made public information by bank examining agencies
A) can; is B) can; is not C) cannot; is D) cannot; is not
Refer to the table. In relation to column (3), a change from column (1) to column (2) would mostly likely be caused by:
A. reduced taste for the good.
B. an increase in input prices.
C. consumers expecting that prices will be lower in the future.
D. government subsidizing production of the good.
A normal good is one
A) with a downward sloping demand curve. B) for which demand increases when the price of a substitute rises. C) for which demand increases when income increases. D) none of the above