If Stagflation Is Present the Short-Run Phillips Curve Is Vertical

question 142

True/False

If stagflation is present the short-run Phillips curve is vertical.

Grasp the role and effects of foreign aid and microcredit on DVC development.

Understand the components and importance of a nation's infrastructure in its development.

Recognize the barriers to transferring technologies from IACs to DVCs.

Evaluate the concept of the vicious circle of poverty and strategies to overcome it.

---

Definitions:

Return on Investment

A financial ratio used to calculate the profitability of an investment, representing the percentage return on the invested amount.

Markup

The difference between the cost of a product or service and its selling price, expressed as a percentage over the cost.

Absorption Costing

A calculation technique in which the cost of a product is determined by including all costs associated with manufacturing, including direct materials, direct labor, as well as variable and fixed overhead costs.

Cost-plus Pricing

A pricing strategy where a fixed percentage is added to the total cost of producing a product to determine its selling price.