Even if all individual demand curves are downwardly sloped, the market demand curve may slope upward
a. True
b. False
Indicate whether the statement is true or false
False
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The novelty of Phillips' article was his finding of a ____ correlation between ____ and ____
a. positive; unemployment; the interest rate b. negative; inflation; the exchange rate c. negative; unemployment; inflation d. positive; the rate of growth of the money supply; inflation
Refer to the graph shown. Monetary policy that shifts the AD curve from AD0 to AD2 is
A. contractionary. B. neither expansionary nor contractionary since it does not affect output. C. expansionary. D. neither expansionary nor contractionary since it does not affect inflation.
During the early 1990s, many workers in military-related industries lost their jobs as the defense budget was reduced. Unemployment of this type is called
What will be an ideal response?
Refer to the accompanying figure, which shows the market for cups of coffee. Consider the original supply and the original demand curve. If the government imposes a price ceiling of $1.00 on a cup of coffee, then there would be:
A. a short-term excess demand for coffee, followed by an increase in the equilibrium price. B. an excess demand for coffee. C. a new equilibrium at a price of $1.00 per cup and a quantity of 50 cups per hour. D. an excess supply of coffee.