"The short-run Phillips curve shifts leftward when the inflation rate rises." Is the previous statement correct or incorrect?
What will be an ideal response?
The statement is incorrect. An increase in the inflation rate leads to a movement along the short-run Phillips curve.
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Pam is determined to lose 10 pounds and plans to adhere to a strict diet. But at the coffee break, she sees tray of glazed donuts and can't resist. She forgoes the plain bagel and devours a donut. Both the donut and bagel are priced at $0.50 . When her office mates tease her, she says matter-of-factly that
a. the MU/P of donuts is higher than that of the bagel, and that's that! b. the MU/P of bagels is higher than that of the donut, and that's that! c. the consumer surplus associated with bagels was higher than it was for donuts, making donuts more attractive d. when it comes to food, she's irrational e. the MU of losing 10 pounds is less than the MU of eating one donut.
How much is a person’s investment worth after 25 years if they invest $200 at 3%?
a. $418 b. $350 c. $275 d. $260
It is possible that two different economists can examine the same situation, such as school funding, and reach entirely different conclusions. Why is this so?
What will be an ideal response?
The congressional act passed in 1978 that established specific numerical goals for the unemployment rate and the inflation rate to be achieved by 1983 was the
A) Federal Reserve Act. B) Gramm-Rudman Act. C) Employment Act. D) Humphrey-Hawkins Act.