The very low inflation that the U.S. experienced in 2009 and 2010
a. appears to have reduced expected inflation, and the short-run Phillips curve shifted downward as a result.
b. appears to have reduced expected inflation, and the short-run Phillips curve shifted upward as a result.
c. does not appear to have reduced expected inflation, and the short-run Phillips curve remained relatively stable as a result.
d. does not appear to have reduced expected inflation, but the short-run Phillips curve shifted dramatically nevertheless.
c
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Suppose the price elasticity of supply for crude oil is 2.5. How much would price have to rise to increase production by 20 percent?
A. 8 percent B. 12.5 percent C. 20 percent D. 45 percent
According to the principle of diminishing returns, an additional worker decreases total output.
Answer the following statement true (T) or false (F)