What is the short-run Phillips curve and what observations does it make?
The Phillips curve was observed as an inverse relationship between the rate of unemployment and the rate of inflation. As unemployment decreased, the rate of inflation increased, and vice versa. At higher levels of unemployment, it is thought that you could buy more employment with a moderate amount of inflation. At relatively low rates of unemployment, however, further efforts to reduce the unemployment rates would come at the expense of higher and higher rates of inflation.
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The assumption of completeness means that
A) the consumer can rank all possible consumption bundles. B) more of a good is always better. C) the consumer can rank all affordable consumption bundles. D) all preferences conditions are met.
When a price ceiling is set below the equilibrium price,
a. the quantity demanded will exceed quantity supplied. b. the quantity supplied will exceed the quantity demanded. c. the quantity supplied will equal the quantity demanded. d. the equilibrium price will fall.