If the long-run aggregate supply curve is vertical
A) the short-run Phillips curve must be vertical.
B) the economy stays at the natural rate of inflation in the long run.
C) the trade-off between unemployment and inflation cannot be permanent.
D) unemployment and inflation are positively related in the long run.
C
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Automatic stabilizers have the effect of
A) increasing aggregate demand during a recessionary ga
The price elasticity of demand measures the ________ that results from a ________
A) change in quantity demanded; change in price B) change in price; change in the quantity demanded C) percentage change in price; percentage change in the quantity demanded D) percentage change in the quantity demanded; percentage change in price E) percentage change in the quantity demanded; change in price
In the 1960s, U.S. economy experienced
A. a substantial decline in real GDP but limited inflation. B. a substantial decline in real GDP coupled with significant inflation. C. substantial real GDP growth coupled with significant inflation. D. substantial real GDP growth with limited inflation.
An irrigation system is installed on a farm in North Dakota. This is an example of which factor of production?
A) labor B) land C) human capital D) physical capital