Which of the following statements is true?
A. The Phillips curve has always been stable.
B. If the Phillips curve shifts outward to the right this illustrates a greater tradeoff between unemployment and inflation.
C. Keynesian economics assumes a vertical Phillips curve.
D. According to the natural rate hypothesis the Phillips curve is downward sloping.
Answer: B
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A monopolistically competitive firm shuts down in the short run if ________
A) marginal revenue equals marginal cost B) total revenues do not cover variable costs C) marginal revenue covers average fixed costs D) average total cost exceeds price
The Glass-Steagall Act, before its repeal in 1999, prohibited commercial banks from
A) issuing equity to finance bank expansion. B) engaging in underwriting and dealing of corporate securities. C) selling new issues of government securities. D) purchasing any debt securities.
Describe in general terms four or five characteristics of less-developed countries.
What will be an ideal response?
Critics of the Fed’s unconventional policies in 2009 and 2010 argued that determining which financial institutions would be bailed out and which would be allowed to fail was a political decision that rightfully belonged to Congress.
Answer the following statement true (T) or false (F)