Which of the following statements is correct? An individual worker's labor supply curve
a. can never be backward sloping.
b. slopes backward if that person responds to a higher wage by taking fewer hours of leisure per week.
c. slopes backward if that person responds to a higher opportunity cost of leisure by working fewer hours per week.
d. slopes upward if that person works the same number of hours per week, regardless of the opportunity cost of leisure.
c
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When an individual deposits currency into a checking account:
A. bank reserves decrease, which reduces the amount banks can lend and reduces the growth of the money supply. B. bank liabilities increase, which reduces the amount banks can lend and reduces the growth of the money supply. C. bank reserves are unchanged. D. bank reserves increase, which allows banks to lend more and increases the money supply.
Changes in which of the following do NOT shift the AS curve? i. the price level ii. potential GDP iii. the money wage rate
A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
Economists call an institution designed to oversee the banking system and regulate the quantity of money in the economy
a. a central bank. b. a charter bank. c. a national bank. d. a state bank.
Answer the following statements true (T) or false (F)
1. A rightward shift of the Phillips Curve suggests that a lower rate of unemployment is associated with each inflation rate. 2. In the context of the Phillips curve, stagflation can only be understood as a rightward shift of the curve. 3. A stable Phillips curve does not allow for the possibility of stagflation. 4. The implication of the long-run Phillips Curve is that there is no trade-off between inflation and unemployment in the long-run. 5. The long-run Phillips Curve is essentially a horizontal line at the economy's natural rate of inflation.