According to the modern expectational Phillips curve, unemployment will equal the natural rate of unemployment when
a. any inflation is present.
b. inflation turns out to be lower than what people expected.
c. inflation turns out to be higher than what people expected.
d. inflation turns out to be equal to what people expected.
D
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An increase in ________ in an open economy of any size leads to ________
A) desired saving; an increase in net capital outflows B) desired investment; a decrease in net capital outflows C) desired saving; an increase in the trade balance D) all of the above E) none of the above
In the long run, increases in the money supply increase the economy's potential output level
a. True b. False Indicate whether the statement is true or false
The players of prisoner's dilemma-type games:
A. have a dominant strategy to never cooperate. B. would be much better off if they could cooperate. C. have an incentive to never cooperate. D. All of these statements are true.
Which of the following statements about the perfect competitor is INCORRECT?
A. The products made by a perfectly competitive firm have no close substitutes. B. If an individual firm raises price, it will lose business. C. The perfect competitor sells a homogeneous commodity. D. The perfectly competitive firm is always a price taker.