The short-run Phillips curve intersects the long-run Phillips curve where
a. the actual rate of inflation equals the expected rate of inflation.
b. the actual rate of unemployment equals the natural rate of unemployment.
c. Both A and B are correct.
d. None of the above is correct.
c
You might also like to view...
If the total cost of producing 2 pounds of cheese is $6 and the total cost of producing 4 pounds of cheese is $8, then:
a. marginal cost of producing cheese declines as output increases. b. average total cost of producing cheese declines as output increases. c. average total cost of producing cheese increases as output increases. d. average total cost remains constant irrespective of the change in output. e. marginal cost remains constant irrespective of the change in output.
When investors become irrationally optimistic that an asset's price will continue to rise, it causes a financial bubble to:
A. become doubted by most serious investors. B. start to inflate. C. be on the verge of bursting. D. burst.
When money is accepted as payment in a market transaction, it is functioning as a
A. unit of accounting. B. unit of investment. C. store of value. D. medium of exchange.
A decrease in government purchases shifts the ________ curve to the ________.
A. aggregate supply; left B. aggregate supply; right C. aggregate demand; left D. aggregate demand; right