Refer to the graph shown. The shift in the short-run Phillips curve shown is most likely to be caused by:
A. a decrease in expected inflation.
B. a decrease in labor productivity.
C. an increase in labor productivity.
D. an increase in expected inflation.
Answer: D
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A labor force survey in Brownland records the following data:
Employed: 189,000 Unemployed: 15,000 Not in the labor force: 84,000 a) Calculate the unemployment rate. b) Calculate the labor force participation rate.
Suppose Congress increased spending by $100 billion and raised taxes by $100 billion to keep the budget balanced. What will happen to real equilibrium GDP?
A) Real equilibrium GDP will fall. B) Real equilibrium GDP will rise. C) Real equilibrium GDP will initially rise, but then fall below its previous equilibrium value. D) There will be no change in real equilibrium GDP.
As the interest rate rises, it is possible that net capital outflow could move from a positive to a negative value
a. True b. False Indicate whether the statement is true or false
One assumption that distinguishes short-run cost analysis from long-run cost analysis for a profit-maximizing firm is that in the short run,
a. output is not variable. b. the number of workers used to produce the firm's product is fixed. c. the size of the factory is fixed. d. there are no fixed costs.