The expectations-augmented Phillips curve implies that as expected inflation increases, nominal wages ________ to prevent real wages from ________
A) fall; rising
B) fall; falling
C) rise; falling
D) rise; rising
C
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The supply of product X is elastic if
A. an 8% increase in price generates an 8% increase in quantity supplied. B. a 10% decrease in price does not affect quantity supplied. C. a 5% increase in price generates a 7% increase in quantity supplied. D. a 7% decrease in price generates a 5% decrease in quantity supplied.
An increase in wages will shift the supply curve up and to the left
Indicate whether the statement is true or false
An example of physical capital is:
A. a construction worker's strength. B. a scientist's knowledge of cellular biology. C. Both of these are examples of physical capital. D. Neither of these is an example of physical capital.
Which of the following combinations are attainable given a consumer's budget line?
a. Combinations that fall beyond the budget line b. Combinations on the midpoint of the budget line c. A combination involving the entire consumption of one good and zero consumption of the other good d. Combinations that fall on the budget line e. Combinations that fall inside the budget line