When a curve shifts, the underlying relationship between the two variables has changed.
Answer the following statement true (T) or false (F)
True
A shift in the curve reflects a change in the relationship between the two variables.
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How does expansionary monetary policy affect a nation's exchange rate?
What will be an ideal response?
Because the price effect is smaller when there are _________ firms, each firm will increase its quantity by __________ before the price effect and quantity effect are equal.
A. more; more B. less; more C. similar; less D. more; less
An adverse supply shock causes inflation to
a. rise and the short-run Phillips curve to shift right. b. rise and the short-run Phillips curve to shift left. c. fall and the short-run Phillips curve to shift right. d. fall and the short-run Phillips curve to shift left.
A major criticism of the World Trade Organization is that it:
A. Raises output and production in developing nations at the expense of developed nations B. Increases the living standards in member nations at the expense of non-member nations C. Weakens collective bargaining and labor laws in member nations D. Imposes costly environmental protections on the world economy