When the natural unemployment rate changes, what happens to the short-run Phillips curve? To the long-run Phillips curve?
What will be an ideal response?
When the natural unemployment rate changes, both the short-run Phillips curve and the long-run Phillips curve shift. If the natural unemployment rate increases, the Phillips curves shift rightward; if the natural unemployment rate decreases, the Phillips curves shift leftward.
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Refer to the information provided in Table 33.5 below to answer the question(s) that follow. Cashews are measured in bushels and tea is measured in pounds (lbs.)
Table 33.5
Refer to Table 33.5. If both countries specialize and trade with each other, Vietnam will export ________ and India will import ________.
A. cashews; cashews B. cashews; tea C. tea; tea D. tea; cashews
Sandra has been working as a software engineer for five years and Jack has been working as a software engineer for two years. Which of the following statements is true of Sandra and Jack?
A) Sandra is likely to earn lower wages than Jack. B) Sandra is likely to earn the same wage as Jack. C) Sandra is likely to be more productive at work than Jack. D) Sandra is likely to be equally productivity at work as Jack.
If mortgage brokers do not make a strong effort to evaluate whether the borrower can pay off a loan, this creates a
A) severe adverse selection problem. B) decline in mortgage applications. C) call to deregulate the industry. D) decrease in the demand for houses.
Markets are
A) a mechanism through which prices of goods and services are determined by the forces of supply and demand. B) specific geographic locations. C) hypothetical constructs used to analyze how people form their tastes and preferences. D) places where people can inspect goods and services carefully.