Ceteris paribus, an increase in the current or actual rate of inflation will cause
A) the unemployment rate to decrease (a movement along the short-run Phillips curve).
B) the long-run Phillips curve to shift leftward.
C) expectations of future inflation rates to be revised downward.
D) the short-run Phillips curve to shift upward.
A
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In the figure above, what is the interval elasticity of demand over the price range $60 to $80?
A. -0.75 B. -2.00 C. -1.40 D. -1.00 E. -1.10
Human capital is:
A) the set of acquired skills and abilities that workers bring to the production of goods and services. B) the financial wealth the economy has available to produce goods and services. C) the ability to produce one of two goods at relatively lower cost. D) a factor of production only if it occurs naturally.
Suppose two goods are perfect substitutes. The price elasticity of demand of one of the goods is
A) 0. B) 1. C) 10. D) infinity.
Martin is not employed. The value Martin places on his leisure time is $30 an hour. Martin looks for a job and all the offers he has are for less than $30 an hour. Martin should supply
A. between 20 and 40 hours per week in the labor market. B. 0 hours in the labor market. C. exactly 40 hours per week in the labor market. D. between 0 and 20 hours per week in the labor market.