Author Question: Following a decline in the inflation rate, once long-term wage contracts are renegotiated and all ... (Read 119 times)

magmichele12

  • Hero Member
  • *****
  • Posts: 559
Following a decline in the inflation rate, once long-term wage contracts are renegotiated and all prices in the economy adjust to their new equilibrium:
 a. the economy will move up the short-run Phillips curve.
  b. the short-run Phillips curve will shift to the left.
  c. the economy will return to the vertical Phillips curve.
  d. the aggregate supply curve will shift to the right.
  e. the aggregate demand curve will shift to the right.

Question 2

Demand for a good is said to be inelastic if the quantity demanded increases substantially when the price falls by a small amount.
 a. True
  b. False
  Indicate whether the statement is true or false



SomethingSomething

  • Sr. Member
  • ****
  • Posts: 323
Answer to Question 1

c

Answer to Question 2

False



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The U.S. Pharmacopeia Medication Errors Reporting Program states that approximately 50% of all medication errors involve insulin.

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

Did you know?

Pubic lice (crabs) are usually spread through sexual contact. You cannot catch them by using a public toilet.

Did you know?

The eye muscles are the most active muscles in the whole body. The external muscles that move the eyes are the strongest muscles in the human body for the job they have to do. They are 100 times more powerful than they need to be.

For a complete list of videos, visit our video library