The self-correcting tendency of the economy means that falling inflation eventually eliminates:

If a firm experiences constant returns to the variable input in the short run:

A) marginal product will be greater than average variable product, but the two will become more equal as output increases. B) marginal product will be less than average variable product, but the two will become more equal as output increases. C) marginal product will be greater than average variable product, and the difference between the two will become larger as output increases. D) marginal product and average variable product will be equal over the range of output in question.

Which of the following might cause an upward shift of the modern Phillips curve?

A) an increase in oil prices B) an increase in the price of imports C) wage agreements that include compensation for inflation D) all of the above E) none of the above