Assume that Country X and Country Y are trading partners and the exchange rates are fixed. If prices in Country Y rise, all of the following are expected to happen except

According to the Phillips curve

A) there is a direct relationship between price-level changes and the level of unemployment rate. B) the unemployment rate is not affected by changes in the price level. C) there is an inverse relationship between price-level changes and the unemployment rate. D) price-level changes are not affected by changes in the unemployment rate.

When economists say goods are scarce, they mean:

a. consumers are too poor to afford the goods and services available. b. consumers are unwilling to buy goods unless they have very low prices. c. goods are generally freely available from nature in most countries. d. the desire for goods and services exceeds our ability to produce them with the limited resources available.