Unemployment rates above the target rate of unemployment lead to:
A. an upward shift of the short-run Phillips curve.
B. a rightward shift of the long-run Phillips curve.
C. a leftward shift of the long-run Phillips curve.
D. a downward shift of the short-run Phillips curve.
Answer: D
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An individual firm desiring to obey the letter of the law while avoiding the effects of regulation may use
a. predatory pricing. b. tit-for-tat strategies. c. creative response. d. collusion.
The larger the wealth effect, the less likely it is that a wage tax will give rise to a Laffer curve that has a downward sloping portion.
Answer the following statement true (T) or false (F)
Total surplus:
A. is producer and consumer surplus combined.
B. is producer surplus minus consumer surplus.
C. is consumer surplus minus producer surplus.
D. is the total amount spent on a good in a market.
Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had fixed exchange rates, these flows would have had the following effect on the financial account and monetary base
a. Financial account would rise and monetary base would fall. b. Financial account would not change and monetary base would fall. c. Financial account would fall and monetary base would not change. d. Financial account would fall and monetary base would fall. e. Financial account would fall and monetary base would rise.