When the aggregate supply curve shifts adversely, what happens to the relationship shown in the Phillips curve?
a. It is reinforced, and made more applicable for policy.
b. It is destroyed, and no longer applies for policy.
c. It is unchanged, although the curve becomes less steep.
d. It is unchanged, although the curve shifts inward and to the left.
b
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A retirement system in which the benefits government pays to retirees are paid out of the contributions those retirees make during their working years is called a
A) pay-as-you-go system. B) fully funded system. C) pension plan. D) deferred retirement system.
Japan has a fairly high saving rate and the level of saving in Japan is above domestic investment. Use the saving and investment equation to explain what Japan is doing with this excess of saving above domestic investment
What will be an ideal response?
All else constant, as the price elasticity of demand decreases, so does the marginal revenue resulting from a decrease in price
Indicate whether the statement is true or false
You and your friend go out shopping for television sets for your respective apartments. You find the one you want to buy and pay extra money to have it delivered during the weekend. Your friend is unwilling to pay extra and will wait for the television to be delivered as per the store's usual practice. Which of the following conclusions can be drawn from this information?
a. You have a higher price elasticity of demand for the TV than your friend. b. Your opportunity cost of time is higher and than your friend's. c. Your friend's opportunity cost of time is higher than your's. d. Both of you have the same price elasticity of demand for the TV.