Rightward and upward shifts of the Phillips Curve in the 1970s and early 1980s were caused by:
A. adverse shocks to aggregate supply.
B. adverse shocks to aggregate demand.
C. an increase in the misery index.
D. the Vietnam War.
A. adverse shocks to aggregate supply.
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According to Gordon, there is no pressing need for policies to reduce ________ unemployment
A) cyclical B) structural C) turnover D) mismatch
In what way does prospect theory differ from the standard theory of expected utility?
a. With prospect theory, preferences depend only on final wealth levels. b. With prospect theory, preferences vary with initial (reference) wealth levels. c. With prospect theory, individuals are risk loving over small losses. d. With prospect theory, risk aversion does not play a role.
If a nonbinding price ceiling is imposed on a market, then the a. quantity sold in the market will decrease
b. quantity sold in the market will stay the same. c. price in the market will increase. d. price in the market will decrease.
At price of $1.20, a local pencil manufacturer is willing to supply 150 boxes per day. At a price of $1.40, the manufacturer is willing to supply 170 boxes per day. Using the midpoint method, the price elasticity of supply is about
a. 2.0. b. 1.23. c. 1.00. d. 0.81.