Suppose an economy experiences a permanent increase in its expected inflation rate. As a result, there is
A) a downward shift of the short-run Phillips curve.
B) a downward movement along the short-run Phillips curve.
C) an upward movement along the short-run Phillips curve.
D) no change at all to the short-run Phillips curve.
E) an upward shift of the short-run Phillips curve.
E
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Refer to the scenario above. What is the expected value of the gamble?
A) 0 B) $50 C) $75 D) $100
Because of easy entry, monopolistically competitive firms will
a. produce at the lowest average total cost b. charge a price equal to marginal cost c. earn no economic profit in the long run d. take advantage of all economies of scale e. earn no economic profit in the short run
When people shop more frequently and transfer money out of their bank account more often in an effort to help avoid the loss in purchasing power of cash, they bear the _____ costs of inflation
a. menu b. shoe-leather c. unit-of-account d. direct
the government created a new tax credit to encourage businesses to build more factories
What will be an ideal response?