Along a short-run Phillips curve when the inflation rate rises,
A) the real wage rate falls and more labor is hired.
B) the expected inflation rate falls.
C) the expected inflation rate rises.
D) the money wage rate falls because the labor market becomes less tight.
E) potential GDP decreases.
A
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Homer, Bart, and Lisa are the only consumers in the market. Using the information in the above table, what is the market demand for chocolate chip cookies at $4.00 per pound?
A) 21 pounds B) 17 pounds C) 11 pounds D) 4 pounds
A perfectly competitive firm will operate and incur an economic loss in the short run if
A) the loss is smaller than its total fixed costs. B) it knows it can recoup the loss in the long run. C) shareholders do not know about the loss. D) the loss can offset future profits.
The government's budget constraint is best represented by which of the following equations?
A) Government purchases of goods and services + Transfer payments + Interest payments on existing debt = Tax revenue + Newly issued government bonds + Seigniorage B) Government purchases of goods and services + Transfer payments + Tax revenue = Interest payments on existing debt + Newly issued government bonds + Seigniorage C) Tax revenue - Transfer payments = Government purchases of goods and services + Interest payments on existing debt + Newly issued government bonds + Seigniorage D) Government purchases of goods and services + Newly issued government bonds + Interest payments on existing debt = Transfer payments + Tax revenue + Seigniorage
Refer to the above table. Suppose there are technological advances in the production of smartphones. The new equilibrium price will be
A) $275. B) $375. C) less than $275. D) between $275 and $375.