Answer the following statements true (T) or false (F)
1) The short-run aggregate supply curve is vertical and the long-run aggregate supply curve is horizontal.
2) The short-run aggregate supply curve shifts to the left when nominal wages rise in response to price level increases.
3) In the extended AD-AS model, the long-run aggregate supply curve is vertical.
4) Demand-pull inflation and cost-push inflation are identical concepts because both involve
lower unemployment rates and rising prices.
5) The Phillips Curve suggests an inverse relationship between increases in the price level and
the level of employment.
1) F
2) T
3) T
4) F
5) T
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Which of the following are assumptions behind the Coase theorem?
A) low transactions costs B) low levels of pollution C) high levels of pollution D) the necessity of government intervention
The above figure gives your budget line between CDs and magazines. The slope of the budget line is ________ CD per magazine
A) 1/2 B) -1/2 C) -1 D) -2
A reason why rogue traders have bankrupt their banks is due to
A) the separation of trading activities from the bookkeepers. B) stringent supervision of trading activities by bank management. C) accounting errors. D) a failure to maintain proper internal controls.
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