A policy change that reduces the natural rate of unemployment shifts both the long-run aggregate-supply curve and the long-run Phillips curve left
a. True
b. False
Indicate whether the statement is true or false
False
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Refer to Figure 24-2. Ceteris paribus, a decrease in the capital stock would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.
A nation can achieve higher economic growth if: a. it devotes more resources to research and development. b. the productivity of labor declines
c. taxes are imposed on investment in capital. d. more resources are allocated to consumption goods.
Mike's income is $600 per month. He spends all of it on books (B) and CDs (C). Books cost $10 and CDs cost $15. His preferences correspond to the utility function U(B,C) = B × C. For that utility function, the marginal benefit of books is C and the marginal benefit of CDs is B. How many books and how many CDs will he purchase in a month?
A. 20 CDs and 30 Books B. 60 CDs and 10 Books C. 15 CDs and 40 Books D. 30 CDs and 15 Books
Costs borne solely by the individuals who incur them are
A) private costs. B) social costs. C) internality. D) common property.