The long-run Phillips curve applies when the economy is at full employment, so the long-run Phillips curve is ________, which demonstrates that changes in the inflation rate ________ effect on unemployment
A) horizontal; have no
B) an upward sloping straight line with a 45 degree slope; have an
C) vertical; have no
D) vertical; have an
E) a downward sloping straight line with a 45 degree slope; have an
C
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The figure above shows the demand for fruit snacks. Which movement reflects a decrease in population?
A) from point a to point e B) from point a to point b C) from point a to point c D) from point a to point d
Currency traders expect the dollar to appreciate. What impact will this have on equilibrium in the foreign exchange market?
A) The dollar will appreciate, and the equilibrium quantity of dollars will increase. B) The dollar will depreciate, and the equilibrium quantity of dollars exchanged will decrease. C) The dollar will appreciate, and the equilibrium quantity of dollars will decrease. D) The dollar will appreciate, and the change in the equilibrium quantity of dollars exchanged cannot be determined.
The expected benefits of central bank independence include avoidance of ________
A) Ben Bernanke B) public scrutiny of central bank policies C) the time-inconsistency problem D) serious policy errors
One method for solving the adverse selection problem is
A) to restrict the ability of the party with information from taking advantage of hidden information. B) by having the government run all firms. C) to close down firms with bad reputations. D) All of the above.