The Phillips curve will shift up with ________ or ________
A) a positive supply shock; an increase in expected inflation
B) a positive supply shock; a decrease in expected inflation
C) a negative supply shock; an increase in expected inflation
D) a negative supply shock; a decrease in expected inflation
C
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Trend refers to
A) increases but not decreases of a variable. B) the difference between the maximum value of the variable and the minimum value of the variable. C) a general tendency for a variable to rise or fall. D) the scale used on the x- and y-axes. E) decreases but not increases of a variable.
A small decrease in a production quota will have a large impact on the support price if:
A) demand is completely elastic. B) demand is highly (but not completely) elastic. C) demand is inelastic. D) The demand elasticity does not affect the price outcomes of a quota program.
Deadweight loss is
A) the amount of taxes that consumers and monopolists pay. B) the loss of output when a perfectly competitive firm becomes a monopolist. C) a loss of benefit to consumers in a monopoly that no one else in society can obtain. D) the price that consumers pay for a product in excess of the average cost of producing it.
With rational expectations, a correctly anticipated policy that would increase AD would lead to: a. higher inflation and lower unemployment in the short run
b. higher inflation and higher unemployment in the short run. c. higher inflation and no change in unemployment in the short run. d. lower inflation and lower unemployment in the short run.