If the short-run Phillips curve is steep, the inflationary costs of using expansionary policy to reduce unemployment would be substantial
a. True
b. False
Indicate whether the statement is true or false
True
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From this chapter we know that a profit maximizing competitive firm will set its price equal to the market price. Briefly describe why a profit maximizing competitive firm will not set its price above the market price. Also, describe why a profit maximizing competitive firm will not set its price below the market price.
What will be an ideal response?
If the marginal product of a unit of physical capital is 10 units of output, and the product that the physical capital is used to produce is sold for $5, the value of the marginal product of physical capital equals:
A) $2. B) $10. C) $20. D) $50.
Under current U.S. tax laws, individuals do not pay taxes on health insurance benefits they receive from their employers
Indicate whether the statement is true or false
What is true at the profit-maximizing quantity for a nondiscriminating monopolist but not true of a perfectly competitive firm?
a. Price equals marginal cost. b. Price is greater than marginal cost. c. Marginal revenue equals marginal cost. d. Marginal revenue is less than marginal cost. e. Marginal revenue is greater than average revenue.