Assume that the price for lawn care has fallen and sales of lawn care services have also fallen. One can conclude that
A) the demand for lawn care service has decreased.
B) the law of supply has been violated.
C) lawn care services are deliberately charging low prices because they want to discourage people from maintaining their own lawns.
D) the number of lawn care service companies has increased.
A
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In the "non-market-clearing model" the level of final goods sales and unemployment during a recession are
A) the result of interactions between supply and demand. B) higher than would be the case in a market clearing model. C) caused by the rapid adjustment of prices and wages. D) the result of wage and price rigidities.
Explain how the original Phillips curve differs from the expectations-augmented Phillips curve (or the modified, or accelerationist Phillips curve)
What will be an ideal response?