A change in price changes the quantity demanded and is represented by a movement along the demand curve.
Answer the following statement true (T) or false (F)
True
Movements along a demand curve are a response to price changes for that good. Shifts of the demand curve occur when the determinants of demand change.
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According to the short-run Phillips curve, which of the following would result in low rates of unemployment?
A) a higher inflation rate B) weak increases in aggregate supply C) a lower inflation rate D) weak increases in aggregate demand
When the U.S. placed tariffs on French wine, France placed high tariffs on U.S. chickens. This is an example of
A) deadweight losses. B) multilateral negotiations. C) bilateral trade negotiations. D) international market failures. E) a trade war.
________ functions are very useful in analyzing production functions, which exhibit both increasing and decreasing marginal products
A) Cobb-Douglas B) Straight-line C) Quadratic D) Cubic
Stagflation is defined as:
a. decreased output accompanied by a higher price level. b. decreased output accompanied by a lower price level. c. increased output accompanied by a lower price level. d. increased output accompanied by a higher price level. e. stagnation in the rate of inflation.