Author Question: A recessionary real shock is associated with an outward shift of the short-run Phillips curve and ... (Read 109 times)

segrsyd · **on:** Jun 30, 2018

A recessionary real shock is associated with an outward shift of the short-run Phillips curve and with a leftward shift of the short-run aggregate supply curve.
a. True
b. False
Indicate whether the statement is true or false

Question 2

If a small change in price will lead to an infinite change in the quantity demanded, then the demand curve is:
a. Perfectly elastic.
b. Perfectly inelastic.
c. Downward sloping.
d. non-linear