Most economists think that, in the short run, there is
a. a trade-off between inflation and unemployment, but not in the long run.
b. no trade-off between inflation and unemployment, nor is there one in the long run.
c. a trade-off between inflation and unemployment, and in the long run also.
d. no trade-off between inflation and unemployment, but there is one in the long run also.
a
You might also like to view...
Payments by a corporation to its shareholders are known as
A) dividends. B) coupons. C) stocks. D) bonds.
The demand for a service like medical care
a. decreases as income increases, indicating that medical care is an inferior good b. is completely insensitive to price; that is, demand is perfectly inelastic c. is perfectly elastic d. is sensitive to the time component of cost e. varies directly with the price of that care
From uncovered interest parity, we know that when the domestic interest rate is greater than the foreign one:
a. the domestic currency is expected to appreciate. b. the domestic currency is expected to depreciate. c. the foreign currency is expected to appreciate. d. the foreign currency is expected to depreciate.
If aggregate demand increases and as a result equilibrium real GDP and employment increase but the price level remains unchanged, we can assume that the aggregate demand curve
A. is vertical. B. is horizontal. C. intersects a vertical segment of the aggregate supply curve. D. intersects a horizontal segment of the aggregate supply curve.