If actual inflation differs from expected inflation, what is the slope of the Phillips curve?
a. It is horizontal in the short and long run.
b. It is upward sloping in the short run and vertical in the long run.
c. It is vertical in the short run and upward sloping in the long run.
d. It is downward sloping in the short run and vertical in the long run.
d
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In the long run, changing technology on average has led to: a. lower employment and lower wage rates
b. higher employment and lower wage rates. c. lower employment with wage rates unchanged. d. higher employment with wage rates unchanged. e. higher incomes and more leisure time.
If the minimum that the Smith family would be willing to sell their house for is $185,000, but they in fact sell it for $210,000, they will receive:
A. producer surplus in the amount of $25,000. B. producer surplus in the amount of $210,000. C. consumer surplus in the amount of $25,000. D. consumer surplus in the amount of $210,000.