If a Phillip curve shows that unemployment is low and inflation is high in the economy, then that economy:
a. is producing at its potential GDP.
b. is producing at a point where output is more than potential GDP.
c. is producing at a point where output is less than potential GDP.
d. is producing at its equilibrium point.
b. is producing at a point where output is more than potential GDP.
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Oscar and Felix are the only firms that clean offices in a large city. They agree to operate as a cartel. The payoff matrix above shows the economic profit that each firm can make. If the game is played only once, then ________
A) Felix and Oscar will each make $10 million economic profit B) Felix will comply and Oscar will make $12 million economic profit C) Felix and Oscar will each make $1 million economic profit D) Felix will cheat and Oscar will make -$2 million economic profit
Assume that transportation costs are especially high for Widgets in the two-country, two-product Ricardian model, and Country A enjoys a comparative advantage in Widgets, then
A) country B must also enjoy a comparative advantage in Widgets. B) country B may end up exporting Widgets. C) country A may switch to having a comparative advantage in the other good. D) country A will still export Widgets. E) Trade may be impossible between the two countries.
When people make decisions on the basis of the face value of currency rather than the real value, their decisions reflect
A. The wealth effect of inflation. B. The income effect of inflation. C. Money illusion. D. The price effect of inflation.
Describe the major spending categories and percentage for health care spending
What will be an ideal response?