When we compare the graph for an increase in aggregate demand with that for the Phillips curve, we can see that the Phillips curve graph is more useful if we want to focus on ______.
a. inflation and unemployment rates
b. aggregate demand and inflation
c. price levels
d. RGDP
a. inflation and unemployment rates
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One difference between monopolistic competition and pure competition is that
A. products may be homogeneous in monopolistic competition. B. there is some control over price in monopolistic competition. C. firms differentiate their products in pure competition. D. monopolistic competition has significant barriers to entry.
The existence of external economies of scale
A) may be associated with a perfectly competitive industry. B) cannot be associated with a perfectly competitive industry. C) tends to result in one huge monopoly. D) tends to result in large profits for each firm. E) focuses more on individual firms than the industry as a whole.
Assuming the same coupon rate and maturity length, when the interest rate on a Treasury Inflation Indexed Security is 3 percent, and the yield on a nonindexed Treasury bond is 8 percent, the expected rate of inflation is
A) 3 percent. B) 5 percent. C) 8 percent. D) 11 percent.
Which of the following is true for perfect competition, monopolistic competition, and monopoly?
a. The product of all firms is homogeneous. b. Firms will earn zero economic profits in the long run. c. Short-run profits are maximized when marginal cost equals marginal revenue. d. All of these.