Most economists now agree that the Phillips curve demonstrates that there is
A. an unemployment–inflation trade-off in the long run, but not in the short run.
B. an unemployment–inflation trade-off in both the short run and the long run.
C. an unemployment–inflation trade-off in the short run, but not the long run
D. no unemployment–inflation trade-off in either the short run or the long run.
Answer: C
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Money is almost always used to quote prices. This illustrates the function of money as a
A. medium of exchange. B. store of value. C. unit of account. D. commodity value.
In the short run, product differentiation enables firms in monopolistically competitive markets to:
A. act like perfectly competitive firms. B. sell a standardized good. C. collude with competing firms to set prices. D. act like a monopolist.
Suppose that only 2 percent of all people are geniuses. If an IQ test indicates that Albert is a genius, but the test is only accurate 90 percent of the time, then the probability that Albert really is a genius is roughly:
A. 18 percent. B. 16 percent C. 10 percent. D. 2 percent.
The problem of political instability has been greatest in which continent?
A. South America B. Europe C. Asia D. Africa