Policymakers' attempts to use the Phillips curve to reduce the unemployment rate below the natural rate
A. will be successful if monetary policy is used.
B. will be unsuccessful if monetary policy is used since monetary policy leads to higher prices.
C. will be unsuccessful since workers' expectations adjust to attempts to reduce unemployment below the natural rate.
D. will be successful since the Phillips curve shows the relationship between the inflation rate and the unemployment rate.
Answer: C
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The argument that jobs are lost to free trade is
A) correct because jobs are lost but foreign countries are helped and we can afford losses. B) totally false because no jobs are lost to free trade. C) somewhat correct because some jobs are lost but incorrect because new jobs also are created. D) true only when tariffs are imposed on the goods being imported. E) incorrect because no jobs are lost and new jobs are created by trade.
In 2010, personal consumption expenditures constituted ________ percent of nominal GDP
A) 70.6 B) 17 C) 18 D) -5.4
Average cost regulation of a natural monopoly: a. generates economic losses for the seller
b. necessitates a subsidy payment to the firm. c. creates incentives that tend to shift ATC curves in an upward direction. d. imposes a price that is less than marginal cost.
The term for measuring the balance of trade by only looking at goods is
a. current account balance. b. merchandise trade balance. c. unilateral transfer balance. d. goods account balance.