What impact does monetary policy have on the long-run Phillips curve?
A) Monetary policy shifts the long-run Phillips curve to the right or left, depending on whether monetary policy is expansionary or contractionary.
B) Monetary policy can only shift the long-run Phillips curve to the right.
C) Monetary policy can only shift the long-run Phillips curve to the left.
D) Monetary policy has no impact on the long-run Phillips curve.
D
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Suppose the industry producing good x is perfectly competitive, and good x can be produced only in integer quantities; i.e. you can't produce fractions of units. Each firm only uses labor as an input, and the marginal product of labor is diminishing throughout.a. a. Draw marginal and average cost curves for a firm in this industry. b. In a perfectly competitive equilibrium in which X* unit are sold at price p*, how many firms are operating?
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A south sea island produces only coconuts. In 2012, the price of a coconut is $1 and the quantity produced is 200. In 2013, the price of a coconut is $1.50 and the quantity produced is 250. 2012 is the base year. Real GDP in 2013 is ________
A) $375 B) $350 C) $200 D) $250 E) $1.50
Consider the two graphs above. Suppose that businesses expect to hire more workers. This would ________ the desired level of the capital stock, as depicted in graph ________
A) increase; B B) increase; A C) decrease; B D) decrease; A
A fall in the domestic interest rate leads to capital
a. outflows and exchange rate appreciation. b. outflows and exchange rate depreciation. c. inflows and exchange rate depreciation. d. inflows and exchange rate appreciation.