Refer to the table shown. The average variable cost of producing five bicycles per week is:Output(bicycles per week)Total cost (dollars)110022003310444055806730790081,200 

What are the lessons from the crisis for monetary policy?

What will be an ideal response?

Answer the following statement(s) true (T) or false (F)

1. The Phillips curve demonstrates a positive relationship between inflation and unemployment rates. 2. Lower real wages make it more profitable for companies to hire additional employees. 3. The relationship demonstrated by the Phillips curve tends to disappear in the long run. 4. As aggregate demand in an economy increases, it moves up and to the left on its Phillips curve. 5. The AD/AS model and the Phillips curve show two completely different and unrelated economic events.