According to the Phillips curve, unemployment will return to the natural rate when:
a) Nominal wages are equal to expected wages
b) Real wages are back at long-run equilibrium level
c) Nominal wages are growing faster than inflation
d) Inflation is higher than the growth of nominal wages
Answer: b) Real wages are back at long-run equilibrium level
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A) loans; deposits B) securities; deposits C) liabilities; assets D) assets; liabilities
Which of the following is TRUE of the price charged by a monopolistically competitive firm at the profit-maximizing level of output?
A) P > MC B) P = MC C) P = MR D) P < AVC
If Bart has budget constraint A in the graph shown, what would cause his budget constraint to shift to B?
This graph shows three different budget constraints: A, B, and C.
A. Bart's income has decreased.
B. The price of soda has increased.
C. The price of soda has decreased.
D. The price of milk has increased.
Which of the following is most likely to be a major source of growth in per capita GDP?
A. a high investment / GDP ratio B. a high rate of inflation C. rapid population growth D. rapid growth in the money supply