When the price level and the unemployment rate both rise, then the economy experiences cost-push inflation
Indicate whether the statement is true or false
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Refer to Figure 14.1. Assume that the economy is originally in equilibrium where real GDP equals potential GDP
Other things equal, an increase in the target inflation rate would best be represented as a movement from ________ in the short run and ________ in the long run. A) point Y to point X; point X to point Y B) point Y to point X; will remain at point X C) point Y to point Z; remain at point Z D) point Z to point X; point X to point Z
A shift of the demand curve to the left represents
A) an increase in demand. B) a decrease in demand. C) an increase in quantity demanded. D) a decrease in quantity demanded.
Which of the following sayings best reflects the concept of opportunity cost?
a. "You can't teach an old dog new tricks." b. "There is no such thing as a free lunch." c. "I have a baker's dozen." d. "There's no business like show business."
Which of the following provides the foundation of the case for free trade?
What will be an ideal response?