Which of the following is true about the short-run Phillips curve?
a. The Fed can only shift the curve in the short run.
b. In the short run, the Fed can shift the curve, but in the long run, the Fed can only move along it.
c. In both the short run and the long run, the Fed can only shift the curve, it can never move along the curve.
d. In both the short run and the long run, the Fed can only move the economy along the curve; it can never shift the curve.
e. In the short run, the Fed can move the economy along the curve, but in the long run, the Fed can only chose which short run Phillips curve to be on.
E
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Refer to Figure 2-11. What is the opportunity cost of producing 1 bolt of cotton in Pakistan?
A) 3/8 of a pound of cashews B) 5/8 of a pound of cashews C) 1 3/5 pounds of cashews D) 150 pounds of cashews
When a policy succeeds in giving buyers and sellers in a market an incentive to take into account the external effects of their actions, the policy is said to
a. equalize private value and private cost. b. equalize private cost and external cost. c. externalize the actions of the buyers and sellers. d. internalize the externality.
Which of the following examples most likely indicates hyperinflation?
a. The price of theater tickets increases 5 percent over the past ten years. b. A grocery manager changes the price of produce three times in one day. c. The price of CDs drops from $15 each to $7 each in two months. d. A customer complains about the price of gas at a station increasing more than at other stations.
According to Malthus, a fixed quantity of land and a growing population combined to produce:
A. accelerating economic growth. B. a stationary state in which growth ceased. C. continuous but variable economic growth. D. a stationary state in which the economy grew, but at a fixed and unchangeable rate.