Higher than expected inflation rate:
a. shifts short-run Phillips curve to the right
b. shifts long-run Phillips curve to the right.
c. shifts both short-run and long-run Phillips curve to the right.
d. shifts short-run Phillips curve to the left.
a
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The fundamental force that drives trade between nations is
A) the government. B) NAFTA. C) absolute advantage. D) comparative advantage. E) legal treaties.
The supply curve slopes upward when graphed against ________, because of ________
A) the price of the good; increasing marginal cost B) the price of the good; decreasing marginal cost C) income; increasing marginal cost D) income; decreasing marginal cost
Consider an Edgeworth economy where there are two citizens, Mr. Cortopassi and Ms. Thomas. There are only two goods to be consumed in the economy, Beer and Pretzels. The total amount of Beer is 12 units. The total amount of Pretzels is 12 units. Answer the following: Suppose Mr. Cortopassi has utility for the two goods characterized as U C (B,P) = B + P. Ms. Thomas's utility function is U T (B,P) = B + P. Identify the points that are Pareto efficient.
What will be an ideal response?
Recall the Application about the decrease in the price of wool in the 1990s to answer the following question(s). In the 1990s, the world price of wool decreased by about 30 percent and prices have remained relatively low since then. In 2012, an organization in New Zealand proposed that sheep shearing be added to the Commonwealth Games and the Olympics as a spectator sport in an effort to increase the awareness and the demand for wool.Recall the Application. If the organization in New Zealand was successful in getting the Olympics to include sheep shearing as a spectator sport, and this helped to raise the world price of wool, the quantity of wool supplied would ________ because the market supply curve for wool is ________ sloped.
A. increase; positively B. increase; negatively C. decrease; positively D. decrease; negatively