The shape of the long-run Phillips curve suggests that over a long time horizon there is a magnified trade-off between the unemployment rate and inflation
a. True
b. False
Indicate whether the statement is true or false
False
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When the quantity demanded of a good exceeds the quantity supplied of the good at the prevailing market price, _____.
A) the market will be in equilibrium. B) the price of the good will decrease. C) the price of the good will tend to increase. D) the demand curve will shift rightward until the surplus is eliminated. E) the supply curve will shift leftward until the surplus is eliminated.
The measure of production that values production using current prices is called
A) nominal GDP. B) value-added GDP. C) real GDP. D) underground GDP.
The risk that all loans will default at the same time is called:
A. liquid risk. B. security risk. C. systemic risk. D. diversified risk.
Economists believe that people are:
A. generally risk-seekers. B. generally risk-averse. C. always risk-averse. D. always risk-seekers.