An increase in expected inflation shifts
a. the long-run Phillips curve right.
b. the short-run Phillips curve right.
c. neither the short-run nor long-run Phillips curve right.
d. both the short-run and long-run Phillips curve right.
b
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A stock is:
A. a payment made periodically to all shareholders of a company. B. a financial asset that represents partial ownership of a company. C. an agreement in which a lender gives money to a borrower in exchange for a promise to repay the amount loaned plus an agreed-upon amount of interest. D. a promise by the bond issuer to repay the loan, at a specified maturity date, and to pay periodic interest at a specific percentage rate.
If planned aggregate expenditure is below potential GDP and planned aggregate expenditure equals GDP, then
What will be an ideal response?
D. most decisions do not involve sacrifices or trade-offs
A. there are always trade-offs between economic goals. B. all production involves the use of scarce resources and thus the sacrifice of alternative goods. C. marginal analysis is used in economic reasoning. D. choices need not be made if behavior is rational.
Economies of scale refer to:
A. the idea that proprietorships are less bureaucratic and therefore more efficient than corporations. B. public investments in highways, schools, utilities, and such. C. the fact that large producers may be able to use more efficient technologies than smaller producers. D. the reallocation of labor from less-productive to more-productive uses.