The long-run Phillips Curve is vertical at:
A. Price level of 100
B. The natural rate of unemployment
C. The natural rate of inflation
D. Potential GDP
B. The natural rate of unemployment
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The conditions in which vertical relationships can enhance a firm's ability to price discriminate include
a. the manufacturer's product is of value to just one type of customer b. the costs of arbitraging the price difference across markets is small c. the manufacturer acquires the distributer in the higher priced market d. competition provides little ability for the manufacturer to price above marginal cost
Which of the following is not true about a change in the price level? a. It will shift the aggregate demand curve
b. It will shift the aggregate expenditure curve. c. It will result in a new value of equilibrium real GDP demanded. d. It will change the real value of dollar-denominated assets. e. It will shift the consumption function.
If an economy is operating at a point inside the production possibilities curve,
a. its resources are not being used efficiently. b. the curve will begin to shift inward. c. the curve will begin to shift outward. d. This is a trick question because an economy cannot produce at a point inside the curve.
If income rises from $1,000 to $1,400 and consumption rises from $800 to $1,168, the marginal propensity to consume is __________ percent
A) 8 B) 85 C) 15 D) 92