If expected inflation increases, the short-run Phillips curve will shift to the left so that inflation will be higher at any given unemployment rate
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
When the Fed ________ the federal funds rate, the opportunity cost of firms' investment ________ and so the quantity of investment ________
A) increases; falls; increases B) decreases; falls; decreases C) increases; rises; decreases D) decreases; rises; decreases E) increases; rises; increases
Transfer payments refer to payments from the government to ________
A) other government agencies B) distribute state taxes collected by the government to individual states C) reimburse property taxes paid by states for government property leases D) certain individuals or groups
Suppose a profit-maximizing firm finds itself producing 1,000 cellular phones each week. The profit is $400 per week. What will the profit be if it were to minimize costs at that output level?
a. $100 b. $200 c. $300 d. $400 e. $500
Holding all other factors constant, consumers demand more of a good the
A) higher its price. B) lower its price. C) steeper the downward slope of the demand curve. D) steeper the upward slope of the demand curve.