Explain how the original Phillips curve differs from the expectations-augmented Phillips curve (or the modified, or accelerationist Phillips curve)
What will be an ideal response?
The original Phillips curve did not take into account the effects of changes in expected inflation on inflation. The expectations-augmented Phillips curve did allow for changes in expected inflation to affect actual inflation.
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Ethanol (E10) refers to
a. an alternative fuel that includes 10 units of MTBE b. the fuel commonly called gasohol c. a fuel comprised of 10 percent ethanol and 90 percent gasoline d. all of the above e. (b) and (c) only
Which of the following statements is true?
A. GDP is greater than national income, which is greater than NDP. B. Government spending is the largest sector of GDP. C. A Social Security check sent to a retiree is counted as part of GDP. D. The purchase of a new factory is counted in the investment sector of GDP.
If the quantity demanded of medical care is higher at a zero price than at some positive price, then it follows that the demand for those specific items that make up health care will be higher (than it would be if the quantity demanded of health care were lower)
Indicate whether the statement is true or false
Refer to the graph shown. If this monopolist were allowed to choose the profit-maximizing level of output, it would charge a price of:
A. $2. B. $12. C. $3. D. $8.