What is the short-run Phillips curve and what observations does it make?
The Phillips curve was observed as an inverse relationship between the rate of unemployment and the rate of inflation. As unemployment decreased, the rate of inflation increased, and vice versa. At higher levels of unemployment, it is thought that you could buy more employment with a moderate amount of inflation. At relatively low rates of unemployment, however, further efforts to reduce the unemployment rates would come at the expense of higher and higher rates of inflation.
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The table above gives the values of different expenditures in the United States during 1999. Answer the following questions about the United States
a. What was the value of net exports of goods and services in 1999? b. What was (nominal) GDP equal to in 1999? c. What was the (nominal) value of total production equal to in 1999?
All of the following methods were used to raise funds to finance the Civil War (1861–1865) except
(a) An income tax (b) The printing of paper money (c) Taxes on prostitution (d) Taxes on whiskey and beer
Moral hazard occurs when one side of an economic relationship:
A. takes costly actions that the other side of the relationship cannot observe. B. takes actions that is contrary to the religious beliefs of the other side of the economic relationship. C. takes actions that the other side of the relationship enjoys doing. D. takes actions that the other side of the relationship cannot force them to do.
The diagram shows the short-run average total cost curves for five different plant sizes of a firm. The position of these five curves in relation to one another reflects:
A. economies and diseconomies of scale.
B. the effect of fixed costs on ATC as output increases.
C. the law of constant costs.
D. the law of diminishing returns.