The idea that the long-run Phillips curve is
a. vertical stems from the analysis of Samuelson and Solow.
b. vertical stems from the analysis of Friedman and Phelps.
c. vertical was disproved by the experiment that monetary and fiscal policymakers inadvertently created in the 1970s.
d. downward-sloping can be correct if unemployment responds very quickly to unexpected inflation.
b
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Sensible buyers or sellers will want to continue acquiring information
A) as long as the additional information extends their choices. B) as long as the anticipated additional benefit exceeds the additional cost of doing so. C) as long as they can be assured of acquiring correct information. D) indefinitely, because more information is better than less.
Why is gold very expensive, even though it is not essential to life, while water, which is essential to life, is inexpensive?
What will be an ideal response?
Which of the following markets would have the highest Herfindahl index? A market with
a. ten firms of widely different sizes b. ten firms of approximately the same size c. five firms of widely different sizes d. five firms of approximately the same size e. eight firms exactly the same size
Steak is a normal good. If the price of steak increases,
a. the income effect on the demand for steak will reinforce the substitution effect b. the income effect on the supply of steak will, to some extent, offset the substitution effect c. the budget line will rotate outward d. consumers' purchasing power will increase e. the budget line will shift outward