The relationship between the AS-AD model and the Phillips curve points out that as aggregate demand increases, the unemployment rate
A) decreases and the price level falls.
B) increases and the inflation rate rises.
C) increases and the inflation rate falls.
D) decreases and the inflation rate does not change, only the price level rises.
E) decreases and the inflation rate rises.
E
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Who is most likely to be worried about high inflation?
(A) A retired couple on a fixed income (B) A shopkeeper (C) A doctor with a suburban practice (D) A factory worker
The human capital model assumes that
a. education is a productive investment that raises total output. b. education does not change potential productivity, but it does save resources by reducing sorting costs for employers. c. the educational system is a very expensive process to legitimize the intergenerational transmission of privileged status. d. such factors as the love of learning should be included in the analysis.