In 1980, the combination of inflation and unemployment the U.S. was experiencing
a. resulted from a leftward shift of the short-run Phillips curve.
b. was consistent with feasible inflation-unemployment combinations provided by the Phillips curve of the 1960s.
c. followed two supply shocks that were triggered by the Organization of Petroleum Exporting Countries.
d. All of the above are correct.
c
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Next year's expected price of oil is $88 per barrel and the interest rate is 10 percent per year. According to the Hotelling Principle the price of oil this year is
A) $80 per barrel. B) $88 per barrel. C) $96 per barrel. D) None of the above answer is correct.
One country will have a comparative advantage over another if its production possibilities a. frontier is higher
b. curve has a different slope. c. curve lies closer to the origin. d. curve lies farther from the origin.
Refer to the above diagram. This firm's average fixed costs are:
A. not shown. B. equal to the per unit change in MC. C. the vertical distance between AVC and MC. D. the vertical distance between AVC and ATC.
The demand for LED TVs increases. As a result
A) the wage rate in the LED TV industry increases and the quantity demanded of workers increases. B) the wage rate in the LED TV industry increases and the quantity supplied of workers increases. C) the demand for labor increases and the supply of labor also increases, leaving wages unchanged. D) the demand for labor increases, but since the supply curve of labor is perfectly elastic, the wage rate does not change.