The short-run Phillips curve could shift to the left as a result of either ____ or ____
a. rising oil prices; increasing inflation expectations
b. rising wages; falling prices
c. declining oil prices; falling inflation expectations
d. falling wages; rising prices
c
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If the menu cost theory is true, then firms that change prices less frequently than other firms are likely to be in
A) more competitive industries. B) service, rather than manufacturing, industries. C) growing, rather than declining, industries. D) less competitive industries.
Exhibit 10-4 Aggregate supply and demand curves
As the economy moves to the right from E1 to E2 in Exhibit 10-4 along the upward-sloping aggregate supply curve the:
A. unemployment rate rises. B. unemployment rate falls. C. inflation rate falls. D. full employment GDP is realized.
The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
Which of the following advances contributed to the "new economy" of the mid-1990s?
A) the increased use of the Internet in selling products and services B) the lower cost and increased availability of laptop computers C) expanded cell phone use D) all of the above