Figure 33-5
?
Over a five-year period, economists observed that the unemployment–inflation relationship appeared as in Figure 33-5. Economic theory would conclude that the period
A. was dominated by supply shocks such as increased energy and food costs.
B. was affected by both supply and demand shocks, with demand shocks dominating.
C. was dominated by demand-side changes.
D. cannot be explained because the relationship is the opposite of what the Phillips curve would predict.
Answer: A
You might also like to view...
A price-taker faces a demand curve that is:
A. upward sloping. B. horizontal at the market price. C. downward sloping. D. vertical at the market price.
Explain the funding structure of the Social Security and Medicare programs. Why are these programs in danger of running out of funds in the future?
What will be an ideal response?
If a conscientious manufacturer underestimates the probability of his product killing someone, the manufacturer will likely take precautions that are not cost justified
Indicate whether the statement is true or false
Refer to Figure 10-7. Suppose the price of Pilates sessions rises to $30 while income and the price of Yoga sessions remain unchanged. What is her new optimal bundle?
A) still remains at bundle A. B) bundle B. C) bundle C. D) bundle D.