The short-run Phillips curve shows only a short-run tradeoff between the unemployment rate and the inflation rate because in the long run the
A) expected inflation rate increases.
B) unemployment rate returns to the natural unemployment rate and so there is no long-run tradeoff between the inflation rate and the unemployment rate.
C) natural unemployment rate increases.
D) inflation rate returns to the natural inflation rate and the unemployment rate returns to the natural unemployment rate.
E) inflation rate returns to the natural inflation rate and so there is no long-run tradeoff between the inflation rate and the unemployment rate.
B
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If a firm is a monopsonistic hirer of labor,
a. its marginal expense for labor is greater than the market wage. b. its marginal expense for labor is equal to the market wage. c. its marginal expense for labor is less than the market wage. d. it is a price taker in the labor market.
A $500 increase in investment will shift the aggregate expenditures curve up by:
a. exactly $500 and will increase the equilibrium level of real GDP by exactly $500. b. exactly $500 and will increase the equilibrium level of real GDP by less than $500. c. exactly $500 and will increase the equilibrium level of real GDP by more than $500. d. more than $500 and will increase the equilibrium level of real GDP by more than $500. e. less than $500 and will increase the equilibrium level of real GDP by less than $500.
If a foreign supplier sells a good in another country at a cheaper price than it sells the good in its home market, the
a. foreign supplier will gain a monopoly in the foreign market. b. consumers in the receiving country will be harmed by the dumping of the good into its domestic market. c. consumers in the receiving country can gain from buying the foreign-produced good if it is cheaper than the cost of producing the good domestically. d. usual implications of the law of comparative advantage with trade restrictions do not hold in this case, particularly if the low-cost supplier is subsidized by a foreign government.
Both country 1 and country 2 are located on their respective production possibilities frontiers (PPFs) for consumer goods and capital goods, but country 1 produces twice the output of both types of goods compared to country 2. It follows that
What will be an ideal response?