A typical neoclassical aggregate supply (AS) curve ______________ and a typical neoclassical Phillips curve __________________.
a. slopes upward; slopes downward
b. is vertical; is vertical
c. is vertical; slopes downward
d. slopes upward; is vertical
b. is vertical; is vertical
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Explain the differences between patents and copyrights
What will be an ideal response?
Firms are ________ with an economic profit of zero, they will ________ in the industry since they ________ be better off in another industry
A) satisfied, stay, won't B) unsatisfied, leave, will C) satisfied, leave, will D) unsatisfied, stay, won't
A level of GDP cannot be at equilibrium when aggregate demand exceeds output because firms will notice that
a. inventory stocks are building up. b. inventory stocks are being depleted. c. their profits are negative. d. many of their workers have little to do.
In an effort to balance the federal budget, an increase in Social Security taxes is passed. What is the most likely effect of this on equilibrium GDP?
A. GDP will increase. B. GDP will decrease. C. GDP will not change but prices will rise. D. GDP will not change but employment will increase.