The short-run Phillips curve shifts upward whenever:
a. inflation rises.
b. a negative supply shock occurs.
c. unemployment rises.
d. all of the above.
B
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The figure above represents the competitive market for slices of key lime pie. When the price is $3, the total consumer surplus equals
A) $120. B) $90. C) $60. D) $0. E) None of the above answers is correct.
Assume it is announced that a large number of new competitors have entered the market for mountain bikes, each offering a different model. Based on this information, this industry is best characterized as:
A) perfectly competitive. B) a monopoly. C) monopolistically competitive. D) an oligopoly.
If a bank does not loan out all of its excess reserves, the amount of money the banking system can create is greater than if all of the excess reserves were loaned out
Indicate whether the statement is true or false
The slope of a production possibilities frontier
A) has no economic relevance or meaning. B) is always constant. C) is always varying. D) measures the opportunity cost of producing one more unit of a good.