Over time in a growing economy, the long run aggregate supply curve will
A. become increasingly steep.
B. move so as to match the short run aggregate supply (SRAS) curve.
C. shift inward to the left.
D. shift outward to the right.
Answer: D
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The natural rate hypothesis concludes that when the inflation rate increases, then in the long run there is
A) an upward movement along the short-run Phillips curve. B) an upward shift of the short-run Phillips curve. C) a downward shift of the short-run Phillips curve. D) no change at all in the short-run Phillips curve. E) a downward movement along the short-run Phillips curve.
The unit-elastic demand curve bends in the middle toward the origin of the graph and at either end moves closer to the axes.
Answer the following statement true (T) or false (F)
The problem with inflation is that as prices rise, consumers can no longer afford to buy as many goods and services
Indicate whether the statement is true or false
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What will be an ideal response?