The fact that the long-run Phillips curve is vertical implies that
A) monetary policy can't affect unemployment.
B) money is neutral in the long run.
C) there is a natural rate of inflation.
D) money can't affect inflation in the long run.
B
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Behavior on the part of the firm that allows it to comply with the letter of the law but violate the spirit reducing the law's effect is
A) asymmetric information. B) creative response. C) the lemons problem. D) only a problem in a monopoly.
In a given year the nominal growth rate is 7% with inflation and population growth rates of 2% and 1.2% respectively, then real growth rate of GDP per capita is:
A. 3.8%. B. 5.0 %. C. 5.8%. D. 7.0 %.
Total utility will be at its maximum when
a. marginal utility is negative. b. marginal utility is positive. c. marginal utility is maximized. d. marginal utility is zero.
Causes of market failure include
a. externalities and market power. b. market power and incorrect forecasts of consumer demand. c. externalities and foreign competition. d. incorrect forecasts of consumer demand and foreign competition.