Which of the following would move the economy up and to the left along a short run Phillips Curve?
a. Increases in the discount rate and increases in the interest rate the Fed pays on bank reserves
b. Increases in taxes by the federal government combined with reductions in government purchases of goods and services.
c. Decreases in the fed funds interest rate target adopted by the Fed.
d. An increase in the expected rate of inflation.
c
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The principle of comparative advantage was first explained by David Ricardo in the early 1800s.
Answer the following statement true (T) or false (F)
The following data relate to the supply schedule of a product.PriceQuantity Supplied$51001020015250203002535030500The price elasticity of supply (based on the midpoint formula) when price increases from $15 to $20 is
A. 0.69. B. 1. C. 0.51. D. 0.64.
Income distribution in the United States over the past 40 years has become more equal
Indicate whether the statement is true or false
As more and more firms have acquired fax machines, the fax machine has become a standard means of business communication. The increase in demand for fax machines for business communication:
A) is an example of the snob effect. B) proves that the fax machine is an inferior good. C) proves that the fax machine is a luxury good. D) is an example of a positive network externality. E) is an example of a negative network externality.