The law of demand refers to the:
a. tendency of prices to increase as more units of a product are demanded.
b. increase in price that results from an increase in demand for a good with a limited supply.
c. inverse relationship between the price of a good and the quantity of the good demanded.
d. increase in the quantity of a good available as the price of the good increases.
c
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A small open economy increases its desired saving. This causes the world real interest rate to ________ and the country's current account balance to ________
A) fall; fall B) remain unchanged; rise C) fall; rise D) remain unchanged; fall
Most economists now agree that the Phillips curve demonstrates that there is
a. an unemployment-inflation trade-off in the long run, but not in the short run. b. an unemployment-inflation trade-off in both the short run and the long run. c. an unemployment-inflation trade-off in the short run, but not the long run d. no unemployment-inflation trade-off in either the short run or the long run.