In the 1960s and early 1970s, many economists and policy makers thought the Phillips curve was
a. interesting, but had no theory behind it.
b. invalid and of no use to policy makers.
c. of no interest in making macroeconomic policy.
d. a "menu" of possible choices available to policy makers.
d
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According to classical theory, full employment in the labor market occurs
A) only when actual expenditures are greater than desired expenditures. B) only when the economy has just experienced a demand shock. C) whenever aggregate demand is less than aggregate supply. D) at a wage rate at which quantity demanded equals quantity supplied.
What is a market economy?
What will be an ideal response?
Which of the following is true of an import quota?
a. is a tax of imported goods b. limits quantity of imports allowed into a country c. will decrease the price of imported goods d. will raise revenue for the government e. helps to address a balance of trade surplus
Which of the following is true for perfect competition but not true for monopolistic competition and monopoly?
A. P = MC and positive long run profits B. Positive long run profits C. P = MC D. MC = MR