The Friedman-Phelps analysis suggests that there is a long-term relationship between
A. inflation and unemployment.
B. unanticipated inflation and cyclical unemployment.
C. cyclical inflation and structural unemployment.
D. anticipated inflation and structural unemployment.
Answer: B
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The current break-even quantity is
a. 3000 b. 600 c. 500 d. 300
Which of the following best describes a tradeoff?
a. An office executive enrolling into a management course to develop her skills. b. An investor buying stocks of a start-up company. c. A businessman investing a portion of company's profit in research and development. d. A college student sacrificing a few hours of study time to work at the town cafeteria. e. A worker purchasing a new car with her bonus earnings.
In the graph showing the Phillips curve after a positive supply shock, we can see that a positive supply shock would cause ______.
a. an increase in inflation rate and a decrease in unemployment rate
b. a decrease in inflation rate and an increase in unemployment rate
c. an increase in both inflation rate and unemployment rate
d. a decrease in both inflation rate and unemployment rate
The annual growth of U.S. labor productivity:
A. was greater between 1973 and 1995 than between 1995 and 2012. B. was greater between 1995 and 2012 than between 1973 and 1995. C. was negative in the late 1990s. D. averaged nearly 5 percent in the 1990s.