Refer to Figure 28-4. Consider the shift in the short-run Phillips curves shown in the above graph. This shift may be explained by
A) either an increase in the natural rate of unemployment from 5.0 to 6.2 percent or an increase in the expected rate of inflation from 4.0 to 5.5 percent.
B) an increase in the expected rate of inflation from 4.0 to 5.5 percent.
C) an increase in the natural rate of unemployment from 5.0 to 6.2 percent.
D) None of the above is correct.
B
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Which of the below is true? a. A price ceiling reduces the quantity exchanged on the market, but a price floor increases the quantity exchanged on the market. b. A price ceiling increases the quantity exchanged on the market, but a price floor decreases the quantity exchanged on the market. c. Both price floors and price ceilings reduce the quantity exchanged in the market
d. Both price floors and price ceilings increase the quantity exchanged in the market.
Several studies, some cited in the text, show that the price elasticities of demand for basic foods such as corn, potatoes, and milk are consistently
a. inconsistent over time b. less than one c. greater than one d. equal to one e. highly volatile