France has a higher natural rate of unemployment than the United States. This suggests that
a. France is at a higher point on its long-run Phillips curve and so has higher inflation than the United States.
b. France is at a lower point on its long-run Phillips curve and so has lower inflation than the United States.
c. France's Phillips curve is to the left of that of the United States, possibly because they have higher inflation.
d. France's Phillips curve is to the right of that of the United States, possibly because they have more generous unemployment compensation.
d
You might also like to view...
Competition from substitute goods is more of a threat when switching costs are high
Indicate whether the statement is true or false
A year-long drought that destroys most wheat crops for the season would shift the:
A. aggregate demand curve only. B. aggregate demand curve, and the short-run aggregate supply curve would shift in response. C. short-run aggregate supply curve only. D. short-run aggregate supply curve and the long-run aggregate supply curve.
If an economy operates on its production possibilities frontier, the natural unemployment rate must be:
a. zero. b. positive. c. negative. d. at 1 percent. e. at 5 percent.
Joe is self-employed in a store that has a rental value of $500 a month which he pays, but he can vacate the building without giving notice. His other expenses are $100 a month for maintenance. He makes $25,000 a year on net sales (total revenue minus the wholesale cost of the product). If he quit his job and worked the same number of hours elsewhere at a job he liked equally well, he estimates that he could make $20,000 a year. No one else can be hired to work in the store. Suppose that the store owner gave Joe the store. Now what should he do?
A. Work part-time. B. Keep the job. C. Quit his job. D. It is impossible to say with the information given in the problem.