Either supply shocks or adjusting inflation expectations can shift the short run Phillips curve
a. True
b. False
Indicate whether the statement is true or false
True
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One way to think of ideas coming out of behavioral economics is to map the ideas into either impacting "tastes" or "constraints". Can you give an example of each?
What will be an ideal response?
Suppose a new law requires all piercing studios to pass tougher licensing tests and to begin using more costly sterilization methods. Other things constant, this law would cause
a. an increase in the supply of piercings and a lower price for piercings. b. an increase in the supply of piercings and a higher price for piercings. c. a decrease in the supply of piercings and a higher price for piercings. d. a decrease in the supply of piercings and a lower price for piercings.
Other than its main role of controlling the supply of money, the functions of the Federal Reserve include
In a competitive market, the market demand is Qd = 400 - 5P and the market supply is Qs = 10P - 80. The full economic price under a price ceiling of $25 is
A. 46. B. 32. C. 29. D. 37.