What happens to the Phillips curve when the expected rate of inflation rises?
A) The curve shifts to the left. B) The curve becomes horizontal.
C) The Phillips curve is unaffected. D) The curve shifts to the right.
D
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What are the two primary factors that influence a firm manager's choice between a labor-intensive and a capital-intensive method of production? How does each factor influence the manager's choice
What will be an ideal response?
Suppose the Fed forecasts a reduction in excess reserve holdings by banks. It might offset the effect of this on the money supply by
A) buying government securities. B) lowering the required reserve ratio. C) lowering the discount rate. D) selling government securities. E) a, b, and c
The danger of using the national defense argument to protect domestic industries necessary to wage war is that
A. it has no validity on noneconomic grounds. B. it is unrelated to the United States’ ability to wage war. C. other nations will retaliate with tariffs against U.S. producers of war material. D. industries with only the most peripheral relationship to defense are likely to invoke this argument on their behalf.
The introduction of satellite television systems would cause the Lerner Index for cable television to
A) become smaller. B) increase. C) change in accordance to the increase in market power of cable TV providers. D) be unchanged.