In 2007 and 2008 households and firms reduced desired expenditures. During the same period inflation fell and unemployment rose
a. The change in inflation, but not the change in unemployment is consistent with what a given short-run Phillips curve implies.
b. The change in unemployment, but not the change in inflation is consistent with what a given short-run Phillips curve implies.
c. Both the change in inflation and the change in unemployment are consistent with what a given short-run Phillips curve implies.
d. Neither the change in inflation nor the change in unemployment are consistent with what a given short-run Phillips curve implies.
c
You might also like to view...
A scatter diagram could help a policy maker decide on the size of a tax cut necessary to increase consumer expenditures by a certain amount.
Answer the following statement true (T) or false (F)
Which of the following examples would most likely be subject to selection bias?
A. 750 National Rifle Association members are questioned to obtain the public's opinion about pending federal legislation regarding stricter gun control laws. B. 500 University of Wisconsin students are polled on their opinion about a possible tuition hike at their school. C. 60 members of a 100-member neighborhood homeowners' association vote to approve funding for private security patrols in their neighborhood. D. 1,000 registered voters in Nashville are called and asked who they are planning to vote for in the upcoming Nashville mayoral election.
Grace has just eaten a slice of pizza and says it gave her a utility of 8. If she chooses to eat a second slice:
A. she will experience a drop in total utility. B. she is not acting rationally. C. she will experience an increase in total utility. D. None of these is true.
John has financial assets totaling $1.5 million, and he plans to use these assets to start his own business. Since John owns these funds and will not need to borrow to start his business, these assets are considered human capital
a. True b. False Indicate whether the statement is true or false