Which of the following is a true statement?
A. Under normal conditions, there is a short-run trade-off between inflation and
unemployment.
B. There is a long-run trade-off between inflation and unemployment.
C. The short-run Phillips Curve is vertical.
D. The long-run Phillips Curve is horizontal.
A. Under normal conditions, there is a short-run trade-off between inflation and
unemployment
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The larger the marginal rate of substitution, the larger is the amount of one good that the consumer is willing to give up in exchange for another good and still remain at the same level of satisfaction
Indicate whether the statement is true or false
Other things the same, the higher the rate of saving and investment in a country, the higher will be the standard of living in the future
a. True b. False Indicate whether the statement is true or false
Which of the following statements about the perfect competitor is INCORRECT?
A) The perfectly competitive firm is always a price taker. B) The perfect competitor sells a homogeneous commodity. C) If an individual firm raises price, it will lose business. D) The products made by a perfectly competitive firm have no close substitutes.
The marginal revenue product of labor curve will always shift to the left if
A. the price of capital falls. B. product demand decreases and product price decreases. C. the wage rate falls. D. product demand increases and product price increases.