Refer to Figure 28-2. Suppose the economy is at point C in the figure above. If workers adjust their expectations of inflation, which of the following will be true?
A) The natural rate of unemployment is 6%.
B) Workers and firms expect inflation to be 1%.
C) The short-run Phillips curve will shift to the left.
D) The short-run Phillips curve will shift to the right.
E) The economy will move from C to A.
C
Economics
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If bread costs $1 per pound and meat costs $4 per pound, a consumer whose marginal utility of meat equals 80 utils per pound is maximizing utility only if the marginal utility per pound of bread equals
a. 4 utils b. 5 utils c. 10 utils d. 20 utils e. 80 utils
Economics