Refer to Figure 11.2. Assume the economy is in equilibrium at 1, where real GDP equals potential GDP, and then the economy experiences a negative demand shock. Other things equal, the negative demand shock is best represented by a(n)
A) movement up along the Phillips curve.
B) movement down along the Phillips curve.
C) upward shift of the Phillips curve.
D) downward shift of the Phillips curve.
B
You might also like to view...
We all use the services of speculators as information in reaching our own economic decisions
A) because speculators are aggressive about marketing the information they produce. B) because we all use prices, which are set by bids and offers based on predictions of the future. C) if we buy or sell commodities through an organized exchange. D) if we play the stock market.
As several eastern states began to legalize casino gambling, the revenues of casinos in Atlantic City began to ________ and their profits ________
A) fall; decreased B) rise; decreased C) fall; increased D) rise; increased
In order to fund industrywide advertising, managers of trade associations often try to charge the members that receive a lower marginal benefit from advertising ________.
A) a high fee B) the total cost of the advertising C) nothing D) a lower fee
The earnings of most people
A. increase with age until around age 60 due to increased experience, training, and hours worked, then level off as hours worked levels off. B. increase with age until around age 40 due to increased experience and hours worked. C. increase steadily until retirement. D. increase with age until around age 50 due to increased experience, training, and hours worked.