If inflation were high in some country and lawmakers in that country passed a law requiring the central bank to maintain a low level of inflation, it is likely that
a. the short-run Phillips curve would shift right and the cost of disinflation would rise.
b. the short-run Phillips curve would shift right and the cost of disinflation would fall.
c. the short-run Phillips curve would shift left and the cost of disinflation would rise.
d. the short-run Phillips curve would shift left and the cost of disinflation would fall.
d
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Which of the following best illustrates the concept of derived demand?
a. As income rises, the demand for TVs rises. b. A fall in the price of cameras will increase the demand for film. c. A fall in the demand for tires will reduce the demand for rubber. d. When the price of gasoline rises, the demand for automobile repair falls. e. If consumers expect the price of coffee to rise, demand for coffee rises.
In the United States, the supply curve for human organs currently is: a. vertical
b. horizontal. c. downward sloping. d. upward sloping.
In the circular-flow diagram, which of the following items flows from households to firms through the markets for the factors of production?
a. goods and services b. land, labor, and capital c. dollars spent on goods and services d. wages, rent, and profit
The aggregate-demand curve
a) has a slope that is explained in the same way as the slope of the demand curve for a particular product.
b) is vertical in the long run.
c) shows an inverse relation between the price level and the quantity of all goods and services demanded.
d) All of the above are correct.