Stagflation
A) is highly unlikely if the Phillips curve is downward sloping.
B) implies that a tradeoff between inflation and unemployment may not always exist.
C) is the simultaneous occurrence of high rates of inflation and unemployment.
D) b and c
E) a, b, and c
E
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Refer to the Article Summary. One explanation for the increase in product sales because of celebrity endorsements is that people seem to receive ________ from goods they believe are popular
A) more utility B) increased path dependency C) diminishing utility D) greater network externalities
Which of the following is not a criticism of monopolies?
a. They restrict output. b. They set price above the perfectly competitive level. c. They tend to be less innovative than firms in a competitive market. d. They exert a disproportionate amount of political influence. e. They reduce allocative efficiency through perfect price discrimination.
Which would cause a leftward shift in the supply curve for telephone service?
a. A decrease in the price of telephones b. An increase in the wage of telephone workers c. An increase in consumer incomes in the economy d. An improvement in telephone technology
A decrease in the real exchange rate will tend to ________ exports and to ________ imports.
A. increase; decrease B. decrease; decrease C. decrease; increase D. increase; increase