A positive relationship exists between monetary growth and interest rates when the
A) aggregate supply curve is horizontal.
B) aggregate demand curve is horizontal.
C) price level is fixed.
D) income effect offsets the liquidity effect.
D
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When the U.S. decides to strengthen its border control, the labor market in California is affected. We would expect the:
A. demand for labor to decrease. B. supply of labor to decrease. C. demand of labor to increase. D. supply of labor to increase.
Milton Friedman and Edmund Phelps ______ the Phillips curve in the 1960s.
a. eliminated b. promoted c. invented d. criticized
The number of unemployed divided by the labor force equals the:
A. employment rate. B. duration rate. C. unemployment rate. D. labor-force participation rate.
Referring to the Economics in Practice on page 320: A successful celebrity endorsement of a product will likely shift the demand curve for the product to the ________, resulting in ________ in the equilibrium price of the item.
A. right; a decrease B. left; a decrease C. left; an increase D. right; an increase