If the public correctly perceives that the central bank will reduce inflation, then
a. the short-run Phillips curve shifts right, and unemployment will rise by more than otherwise.
b. the short-run Phillips curve shifts right, and unemployment will rise by less than otherwise.
c. the short-run Phillips curve shifts left, and unemployment will rise by more than otherwise.
d. the short-run Phillips curve shifts left, and unemployment will rise by less than otherwise.
d
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The above figure shows the costs at Barney's Bagel Bakery. As the amount of output increases, the AVC curve approaches the ATC curve because the
A) TFC curve (not shown) slopes down. B) AFC curve (not shown) slopes down. C) MC curve is rising. D) AVC curve is rising.
With time, which one of the following strategies will most likely result in an outward shift in an economy's production possibilities curve?
a. passage of legislation reducing the workweek to 30 hours b. institution of a tax policy encouraging research that advances technology c. institution of a tax policy encouraging consumption at the expense of investment d. passage of a law requiring the minimum wage to increase every year