Stagflation can be explained by a
a. shift in the short run Phillips curve to the left.
b. shift in the short run Phillips curve to the right.
c. a movement along the short run Phillips curve to the right.
d. a movement along the short run Phillips curve to the left.
B
You might also like to view...
Adverse selection is
a. when people act differently because they are insured b. when more risk averse people want to be insured more c. when people at greater risk want to be insured more d. when your guess at a test question is wrong
With fixed exchange rates, fiscal policy is more powerful with a high degree of capital mobility than with a low degree of capital mobility.
Answer the following statement true (T) or false (F)
You are hired as an economic consultant to The Pampered Pet Shop. The Pampered Pet Shop operates in a perfectly competitive industry. This firm is currently producing at a point where market price equals its marginal cost. The Shop's total revenue exceeds its total variable cost, but is less than its total cost. You should advise the firm to
A. produce in the short run to minimize its loss, but exit the industry in the long run. B. cease production immediately because it is incurring a loss. C. lower its price so that it can sell more units of output. D. raise its price until it breaks even.
The average revenue curve can also be described as the demand curve.
Answer the following statement true (T) or false (F)