According to economist A.W. Phillips
A. there is no trade-off between inflation and unemployment.
B. higher rates of inflation are associated with higher rates of unemployment.
C. unemployment can be effectively combated by raising wages.
D. high inflation rates are associated with low unemployment rates.
Answer: D
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What kind of production technology is this? Graphically (with isocost and isoquant lines) determine the optimal number of shovels and workers used by a firm to dig two trenches when w = r = 10. What will be the (long-run) total cost of the two trenches? What will happen if the rental rate drops to $5 while the wage remains at $10? Add the relevant lines to your graph and compute the new optimal quantity of inputs and total cost.
The rational expectations hypothesis is impeccably logical, but inconsistent with the facts
a. True b. False Indicate whether the statement is true or false
Why do most central banks publish their balance sheets so frequently?
What will be an ideal response?
Let us suppose that consumer expectations are optimistic and therefore consumer spending rises. Which of the following effects would likely take place?
An increase in aggregate demand A decrease in aggregate demand A decrease in aggregate supply An increase in aggregate supply