Which of the following is true?
a. Inflation and unemployment rates can both increase in the short run in response to positive supply shocks.
b. Inflation and unemployment rates can both decrease in the short run in response to reduced aggregate demand.
c. Inflation and unemployment rates can both decrease in the short run in response to positive supply shocks.
d. The short-run Phillips curve relationship appears to be relatively stable over time.
c
You might also like to view...
How is the international economy qualitatively different in the first part of the twenty-first century from what it was like in the first part of the twentieth century?
What will be an ideal response?
If capital is measured on the vertical axis and labor is measured on the horizontal axis, the slope of an isoquant can be interpreted as the
A) rate at which the firm can replace capital with labor without changing the output rate. B) average rate at which the firm can replace capital with labor without changing the output rate. C) marginal product of labor. D) marginal product of capital.
Which of the following is a microeconomic question?
A. Should companies pay for employees' health insurance? B. Why do some countries have higher economic growth rates than other countries? C. Should Congress and the president take action to reduce the unemployment rate? D. Should the Fed attempt to influence the interest rate to control potential inflation?
The slope of an indifference curve
A) measures total utility. B) is calculated by dividing the quantity of the good on the vertical axis by the quantity of the good on the horizontal axis. C) measures the marginal rate of substitution between the two goods in question. D) is calculated by dividing the price of good on the vertical axis by price of the good on the horizontal axis.