If people expect economic fluctuations to be permanent and caused primarily by supply-side shifts, then the result is likely to be a positive relationship between the inflation rate and the unemployment rate
a. True
b. False
Indicate whether the statement is true or false
True
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Fill in the blank: Your authors claim ________ has been the rule rather than the exception through almost all of human history
A) price stability B) poverty C) disinflation D) wealth
The firm in the figure above is in monopolistic competition. It will produce
A) 10 units. B) 20 units. C) 30 units. D) 40 units.
The consumer's optimum choice is represented by
a. MUx/MUy = Px/Py. b. MUx/Px = MUy/Py. c. MRSxy = Px/Py. d. All of the above are correct.
The SRAS curve is upward sloping, there is a liquidity trap, and investment spending is sensitive to changes in the interest rate. According to the monetarist transmission mechanism, if the money supply increases the AD curve __________ and the price level __________
A) does not change; does not change B) shifts to the left; falls C) shifts to the right; rises D) does not change; rises E) none of the above