Events of the 1970s and early 1980s showed that
A) the Phillips curve presents policymakers with a stable menu of choices.
B) cycles of unemployment and inflation rates appear to have gravitated around a 6 percent unemployment rate.
C) lower inflation rates are consistently accompanied by higher unemployment rates.
D) a tradeoff between inflation and unemployment may not always exist.
E) a and c
D
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Suppose that all workers place a value on their leisure of 75 goods per day. The production function relating output per day Y to the number of people working per day N is
Y = 500N - 0.4 N2, and the marginal product of labor is MPN = 500 - 0.8 N. A 25% tax is levied on wages. (a) How much is output per day? (b) In terms of lost output, what is the cost of the distortion introduced by this tax?
Which of the following correctly describes free international trade in accordance with comparative advantage?
a. It is typically favored by producers in importing countries. b. It is typically favored by producers in exporting countries, but hated by their workers. c. It is typically favored by producers in exporting countries, including their workers. d. It is typically hated by consumers in importing countries. e. It is typically hated by farmers, but looked upon favorably by manufacturers.
According to the standard government definitions, the percentage of the U.S. population now (2011) considered to be living in poverty is about:
A. 15.0 percent. B. 20.5 percent. C. 9.8 percent. D. 13.2 percent.
If the exchange rate of the Swiss franc is 1.61 francs per dollar, then the Swiss franc is worth about
A. 15 cents. B. 57 cents C. 62 cents. D. $15.70.