If an economy's resources are fully employed,
a. a great deal of unemployment will be needed to achieve even a small reduction in inflation.
b. the aggregate supply curve (and thus the Phillips curve) will be flat.
c. the aggregate supply curve (and thus the Phillips curve) will be steep.
d. Both a and c are correct.
c
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Where are the final goods and services produced that are included in Germany's GDP?
A) anywhere, as long as they are produced using German labor B) within Germany C) within Germany but only if they are produced using only German resources D) outside of Germany E) anywhere, as long as they are produced using German resources
In peak-load pricing, the capacity decision is determined by setting ________ marginal revenue equal to long-run ________ cost.
A) off-peak; average fixed B) peak; marginal C) peak; average fixed D) off-peak; marginal
As we approached the end of the millennium, many economic crackpots advised citizens to hold large quantities of cash in anticipation of Y2K disasters. What effect would this have had on velocity if many people had been foolish enough to follow this advice?
a. It would have decreased. b. It would have increased. c. It would have remained constant. d. Velocity is unrelated to cash balances.
Suppose that a university charges students a $100 "tax" to register for business classes. The next year the university raises the "tax" to $150 . The deadweight loss from the "tax" triples
a. True b. False Indicate whether the statement is true or false