The Phillips curve is built on the assumption that business fluctuations are
a. from the demand side.
b. from the supply side.
c. from both the demand and supply side.
d. purely random events.
a
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Give a specific example that shows clearly how the System of National Accounts endorsed by the United Nations fails to properly capture activity that harms the environment. Now, suggest a way to quantitatively correct the flaw in the particular case that you describe in part (a).
What will be an ideal response?
The downward slope of the aggregate demand curve shows that
A) a higher price level will cause planned purchase rates for final goods and services to be higher. B) an increase in aggregate demand reduces the long-run aggregate supply. C) a lower price level will cause planned purchase rates for final goods and services to be higher. D) an increase in aggregate demand increases the long-run aggregate supply.
In an environment characterized by perfect competition, we expect that ________
A) there are very few firms in the economy B) there are many firms in the economy but a very few have the lion's share of the industry C) the are many small firms in the economy and every single firm is a price taker D) the government sets prices for all firms E) none of the above
Globalization is a trend:
a. where individuals focus on the cultural, political, and economic connections within their own country. b. where there is a reduction in cultural, political, and economic connections among people around the world. c. where there are expanding cultural, political, and economic connections among people around the world. d. where there is a focus on eliminating the cultural, political, and economic connections among countries.