In the early 1970s, the short-run Phillips curve shifted
a. rightward as inflation expectations rose.
b. rightward as inflation expectations fell.
c. leftward as inflation expectations rose.
d. leftward as inflation expectations fell.
a
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Production data for Joe's Pizza Parlor are as follows. For simplicity assume that labor is the only input. Each pizza sells for $5. Number of WorkersPizzas Baked Per Day00110218324430532How many workers will Joe hire if he must pay each one $35 a day?
A. 1 B. 2 C. 3 D. 4
Under the Bretton Woods system
A) the United States was the only nation with floating exchange rates. B) all nations fixed the value of their currencies against the dollar. C) the United States was the only nation with a fixed exchange rate. D) all nations allowed the value of their currencies to be determined by the free market.
As the best measure of the size of economic fluctuations associated with a business cycle, economists typically use
A) real GDP. B) the deviation of real GDP from potential GDP. C) potential GDP. D) the deviation of real GDP from nominal GDP.
Which of the following conditions would result in the short run marginal cost curve not correctly reflecting the supply behavior of a profit-maximizing firm?
a. The firm is a price taker. b. Price exceeds average total cost. c. The elasticity of demand facing the firm is -3. d. the firm can vary several inputs in the short run.