If employees and employers always accurately forecast inflation, what is the shape of the Phillips curve?
a. It is vertical in the short run, and upward sloping in the long run.
b. It is downward sloping in the short run, and vertical in the long run.
c. It is upward sloping in the short run, and horizontal in the long run.
d. It is vertical in the short run and long run.
d
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The table below shows how the total utility that Alan derives from watching basketball games changes as he watches more and more games each week:
Basketball Games Total Utility Marginal Utility 1 55 2 85 3 110 4 130 5 145 6 155 Fill in the table above. Do the numbers in the table support the law of diminishing marginal utility? Explain.
When the price level changes, which of the following variables will change and thereby cause a change in the aggregate quantity of goods and services demanded?
a. the real value of wealth b. the interest rate c. the value of currency in the market for foreign exchange d. All of the above are correct.