The long-run Phillips curve shifts to the left or the right as expectations of inflation change.
Answer the following statement true (T) or false (F)
False
The long-run Phillips curve is fixed at the target (or natural) rate of unemployment. It shifts only if the target rate of unemployment changes. Changes in expectations are reflected in movements along the long-run Phillips curve.
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Explain why the prices of farm products are subject to abrupt short-term swings.
What will be an ideal response?
Use the following table for a certain product's market in Marketopia to answer the next question.Quantity Demanded DomesticallyPriceQuantity Supplied Domestically1,400$102,2001,60092,0001,80081,8002,00071,6002,20061,4002,40051,200Assume the small-country model is applicable. If the world price of the product is $6 and an import quota of 400 units is imposed on the product, then the equilibrium price in Marketopia would be ________ and the total quantity available in Marketopia would be ________ units.
A. $7; 1,800 B. $6; 1,800 C. $6; 2,200 D. $7; 2,000
The short-run average cost curve shows the lowest possible average cost corresponding to each output level, assuming that all inputs are variable.
Answer the following statement true (T) or false (F)
The demand curve for reserves is:
A) downward sloping. B) upward sloping. C) vertical. D) horizontal.