One reason why the Phillips curve "broke down" is
a. most of the inflation of the 1970s was from the demand side.
b. most of the inflation of the 1970s was from the supply side.
c. the inflation of the 1970s was foreseen, unlike the inflation of the 1980s.
d. the inflation of the 1970s was purely random and could not be explained with economic theory.
b
You might also like to view...
Economic growth in Latin America between 1960 and 2011 is best summarized as
A) a remarkable success. B) an abject failure. C) a mixed record. D) a noteworthy attempt.
If labor markets are competitive, discriminating employers
a. will have to pay higher wages since the available labor supply is smaller. b. will have higher costs and therefore be at a competitive disadvantage. c. will be driven out of business by nondiscriminators. d. All of the above are true.
The theory of liquidity preference is largely at odds with the basic ideas of supply and demand
a. True
b. False
Indicate whether the statement is true or false
The following data describe government spending and revenue.
(a)How much is the budget deficit?(b)How much is the primary budget deficit?(c)How much is the full-employment budget deficit?(d)How much is the current deficit?(e)How much is the current primary deficit?
What will be an ideal response?