Which of the following is held constant when moving along a short-run Phillip's curve?
A) The inflation rate
B) The unemployment rate
C) The expected inflation rate
D) The growth rate of the quantity of money
Answer: C) The expected inflation rate
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________ is generated from taxing profits earned by firms
A) Excise tax B) Sales tax C) Corporate income tax D) Payroll tax
Prices of PlayStation 4 game systems are similar at almost every large retailer and little price competition occurs among these retailers. An explanation for this is
A) retailers are in a prisoner's dilemma which causes them to all charge the same price for PlayStation 4 game systems. B) pricing PlayStation 4 game systems is a repeated game. Over a long period of time a cooperative equilibrium has been reached where retailers charge high prices for these systems. C) retailers are all price takers. D) retailers have lobbied state governments to allow them to collude legally to set the prices of certain products.
The manager of Steel Works learns of a new technological interdependency between the first stage and the intermediate stage of production. If Steel Works currently contracts with another firm for the first stage of production, which of the following is true?
A) The manager has more of an incentive to integrate backward. B) The manager has more of an incentive to integrate forward. C) The manager has less of an incentive to integrate backward. D) The manager has less of an incentive to integrate forward.
Which of the following is correct?
a. An increase in the money supply causes the interest rate to decrease so that aggregate demand shifts left. b. An increase in stock prices reduces consumption spending so that aggregate demand shifts left. c. An increase in the price level causes the exchange rate to rise so that aggregate demand shifts left. d. A recession in other countries reduces U.S. net exports so that U.S. aggregate demand shifts left.