In what ways does the original Phillips curve differ from the Phillips curve created by economists Samuelson and Solow? What conclusions did economists draw based on the findings of Phillips, Samuelson and Solow?
The original Phillips curve showed the inverse relationship between money wage inflation and unemployment. The information used to form this curve was based on an analysis of data from the United Kingdom during the period 1861-1957. The Phillips curve developed by Samuelson and Solow depicted the inverse relationship between price inflation and unemployment and it was based on data from the U.S. during the period 1935-1959. The conclusions drawn from both Phillips curves was that stagflation is extremely unlikely and that policymakers have a menu of choices between different combinations of inflation and unemployment rates.
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A graph is a
a. lengthy, inefficient, and inconvenient way to illustrate information b. diagram illustrating a relationship between variables c. method of proving causation d. tool for incorporating all major and minor variables in one illustration e. clear way to see how the fallacy of composition works
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A. $400. B. $440. C. $420. D. $20.
The different combinations of any two goods that an individual can afford to purchase, given his income and prices, is shown by:
a. an indifference curve. b. an indifference map. c. a budget line. d. a demand curve. e. a supply curve.