The traditional Phillips Curve showing a tradeoff between inflation and unemployment is based on having a stable:
A. Aggregate demand and a shifting short-run aggregate supply
B. Short-run aggregate supply and a shifting aggregate demand
C. Long-run aggregate supply and a shifting aggregate demand
D. Aggregate demand and a shifting long-run aggregate supply
B. Short-run aggregate supply and a shifting aggregate demand
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Smith and Jones comprise a two-person economy. Their hourly rates of production are shown below. CalculatorsPer HourComputersPer HourSmith10010Jones1206If Smith and Jones devote all of their resources to producing computers, then the maximum number of computers they can produce in an hour is:
A. 10. B. 16. C. 6. D. 120.
If a small change in price will lead to an infinite change in the quantity demanded, then the demand curve is: a. horizontal. b. vertical
c. inclined. d. non-linear.
If Japanese tourists visit Disney World, what is the effect in the foreign exchange market?
a. It will increase demand for Japanese yen. b. It will decrease demand for Japanese yen. c. It will increase supply of Japanese yen. d. It will decrease supply of Japanese yen.
The government adds to its overall public debt whenever it:
A. Runs a budget deficit B. Increases money supply in the economy C. Buys government bonds D. Raises tax collection