What is the effect of supply-side inflation on the short-run Phillips curve?
The short-run Phillips curve is drawn on the assumption that fluctuations in the economy's real growth rate from year to year are caused primarily by variations in the rate at which aggregate demand increases. It therefore embodies the concept of a trade-off between inflation and unemployment. If instead fluctuations in the economy's real growth rate are caused by variations in aggregate supply, including leftward shifts, then higher rates of inflation will be associated with higher rates of unemployment, and lower rates of inflation will be associated with lower rates of unemployment. In effect, the short-run Phillips curve will assume an upward slope.
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The act of buying a commodity in one market at a lower price and selling it in another market at a higher price is known as:
a. buying long. b. selling short. c. a tariff. d. arbitrage.
As China's auto production capability has evolved, it is unclear whether protection was beneficial or harmful. Why?
a. Accounting data must be translated from Chinese to English, and that is a difficult task. b. After 30 years of infant industry protection, the tariff on auto imports is still significant (a 25% tariff). c. China will probably never achieve exports, so whether any gains were made is unclear. d. Chinese consumers are exerting more market power, and they are opposed to any kind of import protection.
The government just approved a bill allocating twenty million dollars to hire teachers specifically to work with students in low-income neighborhoods. This action answered which basic economic question?
a. Who will get the goods and services? b. How will the goods and services be produced? c. What is the best method of production? d. What goods and services will be produced?
Answer the question based on the following table, which shows a demand schedule.
What will be an ideal response?