Many economists think that, in the long run, the Phillips curve is
a. a horizontal line.
b. a vertical line.
c. the same as the short-run curve.
d. a 45-degree line from the origin.
b
You might also like to view...
Which of the following is the closest example of a perfectly competitive market?
A. soybeans B. gasoline stations C. fast foods D. beer
Refer to the table below. If the child buys either chocolates or hard candies one piece at a time, what will be his first two purchases?
A child is given $4 of pocket money to be spent on either hard candies or chocolates. Chocolates cost 40 cents and hard candies 80 cents each. The marginal utilities derived from each product are as shown in the following table:
A. A hard candy, followed by another hard candy
B. A hard candy, followed by a chocolate
C. A chocolate, followed by a hard candy
D. A chocolate, followed by another chocolate
What would happen if the German economy became viewed as a less desirable place for foreign investors to put their money because of fears about the growth of the German public debt?
a. Equilibrium would not change. b. A lower quantity of financial investment would result. c. A lower interest rate would result. d. Interest rates would not change.
If firms in a monopolistically competitive market are incurring economic losses, which of the following statements describes the changes that occur as the market adjusts to the long-run equilibrium?
a. Each existing firm's demand curve shifts to the right. b. More firms exit the market. c. Each firm eliminates its excess capacity. d. Both a and b are correct.