The short run Phillips curve
A) shows that any inflation rate can co-exist with the natural unemployment rate.
B) shows the tradeoff between the inflation rate and the unemployment rate, and it shifts when the expected inflation rate changes.
C) shows the relationship between the inflation rate and the expected inflation rate, and it shifts when the natural unemployment rate changes.
D) shows the relationship between the inflation rate and the nominal interest rate, and it shifts when the natural unemployment rate changes.
E) shows the tradeoff between the inflation rate and the unemployment rate and it shifts when the inflation rate changes.
B
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Which of the following counts as part of money?
A) $10,000 in gold bars B) $10,000 in government bonds C) $10,000 in a checking account D) $10,000 in corporate bonds
Which of the following pricing strategies allows a firm to earn economic profit?
A) charging a price equal to the average variable cost of production B) charging a price equal to marginal cost C) price discrimination D) charging a price equal to the average total cost of production
Explain why the long-run total cost curve, not the short-run total cost curve, shows the lowest cost of producing any level of output. Is there an exception?
What will be an ideal response?
Suppose an economy produces milk and honey, and milk is plotted along the horizontal axis of the production possibilities frontier
If the production in the economy is centrally planned (and not market oriented) so that the MRS for the current production level is 3 but the MRT is 2, then there will be an excess ________ for milk and an excess ________ for honey. A) demand, supply B) demand, demand C) supply, demand D) supply, supply E) The market is in equilibrium, and there are no imbalances in supply or demand.