Both the long-run and the short-run Phillips curves shift if
A) the expected inflation rate changes.
B) the expected unemployment rate changes.
C) the natural unemployment rate changes.
D) expected real GDP changes.
E) the actual inflation rate changes.
C
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Suppose that an economy is currently producing at a point that lies inside of its production possibilities set. Which of the following would best explain this circumstance?
A) The prevailing level of technology prevents the economy from producing at a point closer to the frontier of the production possibilities set. B) The economy does not have enough resources to produce at a point closer to the frontier of the production possibilities set. C) The economy is experiencing a high level of unemployment. D) Any of the above statements could explain this situation. E) None of the above statements could explain this situation.
Situation in which quantity supplied is greater than quantity demanded:
a. rationing b. price floor c. excess demand d. surplus e. equilibrium