The natural unemployment rate and the expected inflation rate are constant when moving along the ________, which shows a tradeoff between ________ and ________
A) short-run Phillips curve; inflation; employment
B) long-run Phillips curve; inflation; unemployment
C) aggregate demand curve; inflation; employment
D) aggregate supply curve; inflation; unemployment
E) short-run Phillips curve; inflation; unemployment
E
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An increase in nominal GDP will
A. decrease the transactions demand and the total demand for money. B. decrease the transactions demand for money but increase the total demand for money. C. increase the transactions demand and the total demand for money. D. increase the transactions demand for money but decrease the total demand for money.
The natural unemployment rate
A) is a constant figure of about 4 percent. B) fluctuates with the rate of inflation. C) is the unemployment rate that occurs when the economy is at full employment. D) is equal to cyclical unemployment.
How have the recent increases in the price of gasoline affected the market for hybrid cars?
A. The demand has increased, increasing the equilibrium price and quantity of hybrid cars. B. The supply has increased, decreasing the equilibrium price and increasing the equilibrium quantity of hybrid cars. C. The demand has increased, decreasing the equilibrium price and increasing the equilibrium quantity of hybrid cars. D. The demand and supply of hybrid cars have both increased in response to changing gas prices, so the equilibrium quantity has definitely decreased, but the effect on price cannot be determined without more information.
If different markets for a product produced by a monopolist can be separated and if the elasticity of demand differs between the two markets, then the monopolist will
A) be able to make higher profits by using price discrimination. B) charge a single price in all markets. C) go out of business. D) sell the product in only one of the markets with inelastic demand curves.