Author Question: One factor that explains the short-run trade-off between inflation and unemployment is labor ... (Read 87 times)

vicotolentino · **on:** Jun 30, 2018

One factor that explains the short-run trade-off between inflation and unemployment is labor contracts that fix wages for an extended period of time.
a. True
b. False
Indicate whether the statement is true or false

Question 2

If the short run elasticity of demand for widgets is 0.4 and the long run elasticity of demand for widgets is 0.95, a decrease in price will ____ total revenue in the short run and ____ total revenue in the long run.
a. Increase; increase.
b. Increase; decrease.
c. Decrease; increase.
d. Decrease; decrease.