The short-run Phillips curve tells us, in theory, what combinations of:
A. inflation and output are feasible.
B. the price level and output are feasible.
C. the price level and unemployment are possible when expectations of inflation are constant.
D. inflation and unemployment are possible when expectations of inflation are constant.
Answer: D
You might also like to view...
According to your textbook, globalization tends to increase the productivity of nations through
A) improvements in the labor skills of their citizens. B) increasing technological knowledge. C) improving the coordination of individual economic plans. D) doing all of the above.
Gasoline and motel rooms are complements for many consumers. When the price of gasoline declines, consumers take longer vacations and rent more motel rooms. Therefore, the cross price elasticity between gasoline and motel rooms is
A. positive. B. negative. C. less than one because neither is a luxury. D. more than one because both are luxuries.
One of the potential economic problems associated with the extensive use of macropolicy to recover from the Great Recession is
A. the huge government deficits will cause increasing interest rates which could choke off the recovery. B. the large amount of government spending for job creation could result in rapid and uncontrollable increases in wages. C. the flood of money into the banks could cause excessive investment expenditures in the economy. D. the tax rebates made available to consumers could cause uncontrollable increases in the price of housing.
You can either read a book, get something to eat, or take a nap. The opportunity cost of getting something to eat is _____
a. the cost of what you eat. b. the difference between the costs of the book and the food. c. the difference between the opportunity costs of reading and sleeping. d. the net benefit of sleeping. e. impossible to determine because the most preferred alternative is not known.