When expectations of inflation are revised upward, the short-run Phillips curve:
a. shifts rightward.
b. becomes steeper.
c. shifts leftward
d. becomes flatter.
a
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Suppose x is an inferior good. Then we will overestimate the deadweight loss from taxes on consumption good x if we use the uncompensated demand curve rather than the marginal willingness to pay (or compensated demand) curve.
Answer the following statement true (T) or false (F)
Suppose that, initially, the nominal interest rate is 6 percent and the inflation rate is 3 percent. If the inflation rate increases to 6 percent, what will be the new nominal interest rate?
A) 6 percent B) 1 percent C) 11 percent D) 9 percent
Intraindustry trade relies on
A) economies of scale. B) the product cycle. C) differences in factor endowments. D) government industrial policies. E) monopoly pricing.
In 2009, nominal GDP was $14,050 billion and M1 was $1,587 billion. Velocity was
a. 0.11. b. 8.85. c. 11.30. d. 14.25.