The Magnitude of the Slope of an Indifference Curve Is

question 16

Multiple Choice

The magnitude of the slope of an indifference curve is

• A)the marginal rate of substitution.
• B)the marginal rate of transformation.
• C)the marginal propensity to consume.
• D)the marginal propensity to substitute.
• E)the relative price of good Y.

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Definitions:

Inflation

A broad upsurge in pricing with a corresponding fall in the worth of money.

Short-run Phillips Curve

A graphical representation showing the inverse relationship between unemployment and inflation rates in the short term.

Inflation Expectations

Inflation expectations are the rate at which people—consumers and investors—expect the general level of prices to change in the future.

Unemployment Rate

The portion of the labor market that consists of people who are jobless and actively on the lookout for work.