Based on the graph showing a reduction in the growth of the money supply, if the inflation rate remains at 3 percent for a substantial amount of time, people will adjust their expectations regarding the inflation rate to this level, which ______.
a. shifts the short-run Phillips curve to the left
b. shifts the short-run Phillips curve to the right
c. moves the economy back down the Phillips curve to Point A
d. moves the economy back up the Phillips curve to Point B
a. shifts the short-run Phillips curve to the left
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Unless you accept his 'final offer' your opponent threatens to scrap the whole deal:
a. His threat is more believable if both parties would be harmed by scrapping the deal b. His threat is more believable if he has better outside options c. His threat is more believable if only he is hurt from the deal falling through d. His threat is more believable if he has balked at this course of action in the past
If some resources went to waste rather to use in production, the economy would operate outside its production possibility curve
a. True b. False Indicate whether the statement is true or false
Abnormal net income is similar to economic profit
Indicate whether the statement is true or false
Milo drives to work 30 miles on the freeway every day. Briefly explain what type of spillover Milo’s actions are creating, and explain why it is this type of spillover and how it influences others.
What will be an ideal response?