Higher than expected inflation rate:
a. shifts short-run Phillips curve to the right

The production possibilities curve for two products is bowed out because

A) as the production of a good increases, opportunity cost increases. B) as the production of a good increases, opportunity cost is unchanged. C) the qualities of the resources are not identical. D) there are unemployed resources.

Suppose a taxpayer has an income of $50,000 and a taxable income of $45,000, and pays $5,000 in taxes. If the taxpayer talks of being taxed at a 10 percent tax rate, she is referring to the

A. Nominal tax rate. B. Average tax rate. C. Marginal tax rate. D. Effective tax rate.