An Increase in Price Expectations Shifts the Long-Run Phillips Curve,but

question 49

True/False

An increase in price expectations shifts the long-run Phillips curve,but not the short-run Phillips curve.

---

Definitions:

Decreasing Returns to Scale

A situation in which a proportional increase in all inputs results in a less-than-proportional increase in output.

Cobb-Douglas Production Function

The Cobb-Douglas Production Function is an economic model representing the relationship of an output to inputs, typically showing how labor and capital contribute to the production process in a way that reflects diminishing returns.

Returns to Scale

The rate at which output increases as inputs are increased proportionally in the production process.

Logarithmic Variable Cost Function

A formula representing the variable costs of production as a logarithmic function, indicating how these costs evolve as production volume changes.