The original Phillips curve implied or assumed that
A) the markup over labor costs was zero.
B) the expected rate of inflation would be zero.
C) the actual and expected rates of inflation would always be equal.
D) all of the above
E) none of the above
B
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Briefly explain the difference between naive voting and strategic voting
What will be an ideal response?
Which of the following is a common mistake managers make?
A. Maximizing the value of the firm instead of maximizing the firm's profits. B. Increasing the rate of production in order to reduce unit costs of production. C. Treating implicit opportunity costs as part of the total costs of using resources. D. Using marginal analysis to make output decisions. E. all of the above.
Refer to the graph shown. A movement from D to B is most likely to be caused by:
A. a decrease in input prices. B. a decrease in import prices. C. a decrease in aggregate demand. D. an increase in expected inflation.
When real rates of interest are positive, it is better to be a:
A. borrower than a saver, because the value of savings and debts are increasing. B. saver than a borrower, because the value of savings and debts are increasing. C. borrower than a saver, because the value of savings and debts are decreasing. D. saver than a borrower, because the value of savings and debts are decreasing.