Which of the following correctly describes the Phillips curve? ?
A. ?A curve showing the inverse relationship between interest rates and the quantity of money demanded.
B. ?A curve showing the direct relationship between interest rates and the quantity of money demanded.
C. ?A curve showing the direct relationship between the inflation rate and the unemployment rate.
D. ?A curve showing the inverse relationship between the inflation rate and the unemployment rate.
Answer: D
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Inflation occurs over time as a result of
A) long-run aggregate supply increasing faster than aggregate demand. B) long-run aggregate supply increasing faster than short-run aggregate supply. C) decreases in aggregate demand. D) aggregate demand increasing faster than long-run aggregate supply.
Individuals who specialize in activities that lower transaction costs are
A) consumers. B) producers. C) bureaucrats. D) middlemen.