What did Milton Friedman and E.S. Phelps argue with respect to the Phillips Curve?
A) The inverse relationship between unemployment and inflation only holds in the long run. In the short run, unemployment and inflation are positively related.
B) The inflation rate will consistently be 2 percentage points below the unemployment rate.
C) Economic participants would soon understand activist policymakers' strategy and revise their expectations, making discretionary efforts to fine-tune the economy ineffective.
D) The Phillips Curve could accurately guide activist policy makers over the long run.
C
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According to your textbook, the benefits of civilization are heavily dependent on
A) accurate numerical estimates by government officials of available resources and of basic consumption requirements. B) agreement among the members of society on the best means for achieving their goals. C) agreement among the members of society on the goals to be pursued. D) government planning for long-run economic growth. E) the ability to induce other people to cooperate.
The figure above shows the market for milk. If the population increases, then the efficient quantity of milk ________ and the producer surplus ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
The $50 billion emergency loan orchestrated by the U.S. Treasury and the IMF to Mexico in 1994
A) was a disastrous policy for Mexico. B) avoided a disaster to the Mexican economy. C) did not affect Mexico in the short run. D) did not affect Mexico in the long run. E) was ineffective both in the short and long runs.
In what type of exchange rate system is the level of official reserves the most important?
A. Reserves are equally important in all systems B. A partially-flexible exchange rate system C. A fixed exchange rate system D. A flexible exchange rate system