In the early 1960s, the discovery of the Phillips curve relationship caused economists and policy makers to think that they understood the trade-offs between:
a. aggregate supply and aggregate demand.
b. interest rate and investment.
c. inflation and unemployment
d. monetary and fiscal policy.
e. rule-making and discretionary policy.
c
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In a general equilibrium model
A) all markets but one clear. B) there are no fluctuations. C) all prices are exogenous. D) all prices are endogenous.
A change in the supply of labor, all else remaining the same, will shift the short-run aggregate-supply curve
a. True b. False Indicate whether the statement is true or false
A firm should continue producing until
A. the cost of producing the output equals the revenues obtainable from selling the output. B. average costs are at a minimum. C. the average cost when another unit is produced equals the average revenue obtainable from selling the extra unit. D. the cost of increasing output by one more unit equals the revenues obtainable from selling the extra unit.
In cases where there is low productivity in extraction methods for a common resource,
A. the resource becomes nonrival in consumption. B. overuse is more likely. C. overuse is less of a problem. D. the resource becomes excludable.