The Phillips curve shows the relationship between inflation and :
(a) The balance of trade.
(b) The rate of growth in the economy.
(c) Unemployment.
(d) Fiscal Policy.
Answer: (c) Unemployment.
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Most immigrants to Country X are high-skilled workers. How would the wages of these workers be affected by changes in immigration levels?
a. An immigration increase would increase their wages. b. An immigration increase would not affect their wages. c. An immigration decrease would decrease their wages. d. An immigration decrease would increase their wages.
A bank run at a bank often triggers a chain reaction of runs on other banks in an economy
a. True b. False Indicate whether the statement is true or false
According to the theory of rational expectations, the government can influence output
a. with appropriate fiscal and monetary policy. b. in the short run, but not in the long run. c. without affecting the price level. d. only by making unexpected changes that impact aggregate demand.
In the inverted-U theory of R&D, which of the following industry concentration ratios would be most conducive to R&D (as a percentage of firm sales)?
A. 1 percent. B. 10 percent. C. 50 percent. D. 70 percent.