In the short run, as output rises above potential ________
A) inflation will fall from its current level which explains the upward-sloping nature of the Phillips curve
B) inflation will rise from its current level which explains the upward-sloping nature of the aggregate supply curve
C) unemployment will rise above the natural rate which explains the upward-sloping nature of both the Phillips curve and the AS curve
D) all of the above
E) none of the above
B
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A ________ curve means that ________
A) horizontal demand; a change in price does not change total revenue B) horizontal demand; the elasticity of demand is less than 1 C) horizontal supply; the elasticity of supply is infinite D) horizontal supply; the elasticity of demand is infinite E) vertical demand; a change in price does not change total revenue
Why is it not efficient to eliminate all pollution?
What will be an ideal response?
If you hear that unemployment increased by 2 percentage points to 4 %in the past year, while the labor force participation rate and the population remained constant, it means:
A. unemployment doubled in the past year. B. there was a 100 percent increase in unemployment. C. twice as many people are without work than was the case a year ago. D. All of these are true.
A tax on the buyers of cameras encourages
a. sellers to supply a smaller quantity at every price. b. buyers to demand a smaller quantity at every price. c. sellers to supply a larger quantity at every price. d. Both a) and b) are correct.