Historical evidence suggests that
A. the Phillips curve is horizontal.
B. once policy makers attempted to exploit a short-run Phillips curve trade-off, it disappeared.
C. inflation rates are lowest when unemployment rates are also low.
D. shifts in long-run aggregate supply do not affect real output.
Answer: B
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Economic growth can be shown by
A) a rightward shift in the aggregate supply curve. B) a leftward shift in the aggregate supply curve. C) a leftward shift in the production possibilities curve. D) no change in the aggregate supply curve.
The official poverty income threshold in the United States is
A. based on the cost of a budget that includes food, clothing, and shelter. B. never adjusted for the effects of inflation. C. the same for all families independent of the number of people in the family. D. calculated as three times the cost of a minimally acceptable diet for a family.
If Wes in Wisconsin buys $200 worth of stock in Toshiba, and the Japanese use the $200 to buy a wheel of cheese from Wes, then the U.S. net exports:
A. and net capital outflow are both zero. B. equals $200 and net capital outflow is zero. C. and net capital outflow both equal $200. D. is zero and net capital outflow is $200.
The first-order conditions for profit maximization in a perfectly competitive market are:
A. (dR(Q)/dQ) ? (d2C(Q)/dQ2) < 0. B. P > (dC(Q)/dQ). C. P ? (dC(Q)/dQ) = 0. D. P ? (d2C(Q)/dQ2) = 0.