A Phillips Curve that has a negative slope is consistent with
A) a constant price level.
B) constant velocity.
C) an upward sloping aggregate supply curve.
D) a vertical aggregate supply curve.
C
You might also like to view...
The slope of the aggregate demand curve indicates that ________ in the inflation rate leads to ________ of real GDP demanded by households and firms
A) an increase; a higher level B) a decrease; a lower level C) a decrease; a higher level D) an increase; no change in the level
In a production process, all inputs are increased by 10%; but output increases less than 10%. This means that the firm experiences
A) decreasing returns to scale. B) constant returns to scale. C) increasing returns to scale. D) negative returns to scale.
Which of the following would not cause market demand for a normal good to decline?
a. An increase in the price of a complement. b. An increase in the price of a substitute. c. An announcement by the Surgeon General that the product contributes to premature death. d. Consumer expectations that the good will go on sale in the near future. e. A decline in consumer income.
If supply and demand both increase, the new equilibrium price will be ________ and the new equilibrium quantity will be ________.
A. higher; higher B. lower; uncertain C. lower; lower D. uncertain; higher