In the graph showing the Phillips curve after a positive supply shock, we can see that a positive supply shock would cause ______.
a. a leftward shift in the Phillips curve
b. a rightward shift in the Phillips curve
c. a movement to a point further up the Phillips curve
d. a movement to a point further down the Phillips curve
a. a leftward shift in the Phillips curve
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The following table shows Jay's estimated annual benefits of holding different amounts of money.Average moneyholdings($)Total benefit($)1002020029300664004150044How much money will Jay hold if the nominal interest rate is 4 percent? (Assume he wants his money holdings to be in multiples of $100.)
A. $200 B. $300 C. $400 D. $100
A recent decline in interest rates made home construction more affordable for many families. The consequent increase in construction produced a rightward shift in the demand curves for construction materials. Economists would say that the change in demand for materials is due to
a. the principle of marginal productivity. b. rent seeking. c. diminishing marginal returns. d. derived demand.
In the long run, zero economic profit exists in monopolistic competition and perfect competition.
Answer the following statement true (T) or false (F)
Answer the following questions true (T) or false (F)
1. In the short run, a firm that incurs losses might choose to produce rather than shut down if the amount of its revenue is less than its fixed cost. 2. If a firm shuts down in the short run, it avoids its variable cost but not its fixed cost. 3. If a firm shuts down in the short run, its maximum loss equals the amount of its fixed cost.