Answer the following statements true (T) or false (F)
1) A shift in the Phillips Curve to the left will improve the short-run inflation-unemployment
choices available to society.
2) A rightward and upward shift of the Phillips Curve is consistent with the occurrence of
stagflation.
3) There is no trade-off between unemployment and inflation in the long run.
4) There is no trade-off between unemployment and inflation in the long run.
5) The Laffer Curve underlies the contention that lower tax rates need not reduce tax revenues.
1) T
2) T
3) T
4) F
5) T
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An appreciation of a country's currency
A) decreases the relative price of its exports and lowers the relative price of its imports. B) raises the relative price of its exports and raises the relative price of its imports. C) lowers the relative price of its exports and raises the relative price of its imports. D) raises the relative price of its exports and lowers the relative price of its imports. E) raises the relative price of its exports and does not affect the relative price of its imports.
A monopoly advertises
A) to raise its profit. B) to decrease costs. C) dissuade entry by other firms. D) reduce deadweight loss.
A policy that increases saving
a. will worsen economic growth, but improve health outcomes. b. will worsen economic growth and health outcomes. c. will improve economic growth, but worsen health outcomes. d. will improve economic growth and health outcomes.
If the Price Elasticity of Demand is unit elastic, then a fall in price:
a) Reduces revenue. b) Leaves revenue unchanged. c) Increases revenue. d) Reduces costs.