According to the Phillips curve model, when expectations of inflation increase, the same level of unemployment will be associated with a higher rate of inflation.
Answer the following statement true (T) or false (F)
True
Higher expectations of inflation shift the short-run Phillips curve up so that the same level of unemployment is associated with a higher rate of inflation.
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An exterior painting company is contemplating buying a bigger truck and ladder. This is a
a. bad decision because average costs will be higher b. good decision because average costs will be lower c. long-run decision d. short-run decision e. bad decision because more fuel will be needed
Which of the following is a possible justification for restricting trade? a. Restricting trade decreases domestic production
b. Restricting trade increases domestic unemployment. c. Restricting trade ensures lower domestic wages. d. Restricting trade protects domestic production.
At the utility maximizing choice, the marginal utility of a hamburger is 50 utils, while the marginal utility of French fries is 25 utils. If the price of French-fries $5, the price of a hamburger is _____
a. $10 b. $5 c. $4 d. $2.50
If firms in a competitive price-searcher market are currently earning economic losses, then in the long run,
a. new firms will enter the market, and the current firms will experience a decrease in demand for their products until zero economic profit is again restored. b. new firms will enter the market, and the current firms will experience an increase in demand for their products until zero economic profit is again restored. c. some existing firms will exit the market, and the remaining firms will experience an increase in demand for their products until zero economic profit is again restored. d. some existing firms will exit the market, and the remaining firms will experience a decrease in demand for their products until zero economic profit is again restored.