The Phillips curve illustrates the relationship between
a. change in the money supply and change in unemployment.
b. tax rates and tax revenues.
c. the equilibrium level of income and the employment rate.
d. inflation and unemployment.
D
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Which of the following is illustrated by the distance between the aggregate expenditure line and the 45-degree line at each level of real GDP?
a. The level of saving in an economy b. Unplanned inventory change c. Planned investment undertaken in an economy d. The marginal propensity to save e. The marginal propensity to consume
A multilateral approach to free trade has greater potential to increase the gains from trade than a unilateral approach, because the multilateral approach can reduce trade restrictions abroad as well as at home
a. True b. False Indicate whether the statement is true or false
Which of the following statements about inflation is correct?
a. Evidence from studies indicates that, in U.S. newspapers, inflation is mentioned less frequently than other economic terms, such as unemployment and productivity. b. People believe the inflation fallacy because they tend to believe too strongly in the principle of monetary neutrality. c. Nominal incomes are determined by nominal factors; they are not affected by real factors. d. Inflation does not in itself reduce people's real purchasing power.
An industry is said to be a natural monopoly when:
A. legal barriers limit entry into the market. B. diseconomies of scale are present in the market. C. the market demand for the product supplied by a firm is inelastic. D. long-run average cost continues to decline as the quantity of output increases.