The Phillips curve
a. is the same as a country's production possibilities frontier..
b. is upward sloping.
c. illustrates the Fed's choice between inflation and unemployment in the long run.
d. illustrates the Fed's choice between inflation and unemployment in the short run.
e. illustrates the Fed's choice between inflation and tax revenues in the short run.
D
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Refer to Figure 6-1. The demand curve on which elasticity changes at every point is given in
A) Panel A. B) Panel B. C) Panel C. D) none of the above graphs.
If the least-cost input combination doesn't include all inputs, it's called:
A. a boundary solution. B. an incomplete solution. C. an interior solution. D. an efficient solution.
Later, the teaching assistant in Eleanor's economics course gives her some advice. The teaching assistant says, "Based on past experience, working on 12.5 problems raises a student's exam score by about the same amount as reading the textbook for 1 hour." For simplicity, assume students always cover the same number of pages during each hour they spend reading. Given this information, in order to use her 4 hours of study time to get the best exam score possible, how many hours should she have spent working on problems and how many should she have spent reading?
What will be an ideal response?
If the PCE deflator increased from 88 to 99 in one year, the rate of consumer inflation is:
A. 10.0 percent. B. 12.5 percent. C. 13.4 percent. D. 11.0 percent.