Once economists take into consideration changes in the expected inflation rate and supply shocks, the Phillips curve
A) only remains useful when explaining the long-run trade-off between unemployment and inflation.
B) remains a useful tool for explaining the short-run trade-off between unemployment and inflation.
C) is no longer a useful tool for explaining any trade-off between unemployment and inflation.
D) accurately explains the short-run and long-run trade-offs between unemployment and inflation.
B
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The rate of growth of productivity in the United States was positive during the 20th century
Indicate whether the statement is true or false
For a monopolistically competitive firm, price equals average revenue
Indicate whether the statement is true or false
When a corporation announces a major decline in earnings, the stock price may initially decline significantly and then rise back to normal levels over the next few weeks. This impact is called
A) the January effect. B) mean reversion. C) market overreaction. D) the small-firm effect.
How does the aggregate demand curve differ from a demand curve for, say, bananas?
What will be an ideal response?