If the expected inflation rate rises, then the short-run Phillips curve ________ and the long-run Phillips curve ________
A) does not shift; shifts
B) does not shift; does not shift
C) shifts; does not shift
D) shifts; shifts
E) might shift; shifts only if the short-run Phillips curve shifts
C
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The various quantities of all final commodities demanded at various price levels, ceteris paribus, is the
A) LRAS. B) production possibilities curve. C) aggregate demand curve. D) aggregate supply curve.
The price of a stock is currently $750 and the stock will pay a $43 dividend. The interest rate is 7.5%. Based on the dividend-discount model, what is the expected price of this stock for next year?
A. $691.17 B. $657.67 C. $763.25 D. $651.17
In developing countries, the highest returns are from investing in:
A. transportation systems. B. sanitation systems. C. education. D. defense.
Governments sometime create an excess demand for a product by setting a maximum price that is less than the equilibrium price, resulting in a permanent excess demand for the product. This is known as a price floor.
Answer the following statement true (T) or false (F)