In the late 1960s, the Friedman-Phelps "natural rate hypothesis" predicted from the microeconomic structure of the labor market that the long-run Phillips Curve is ________, while macroeconomic events caused a very ________ acceptance of this ch
in aggregate supply theory. A) horizontal, rapid
B) horizontal, gradual
C) vertical, rapid
D) vertical, gradual
C
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Refer to Table 8-8. Suppose that a simple economy produces only four goods and services: sweaters, CDs, sugar, and soft drinks
Assume one half of the sugar is used in making the soft drinks and the other half of the sugar is purchased by households. Calculate nominal GDP for this simple economy.
Mike is able to complete a tax return in two hours earning a fee of $100 . As an alternative, he could pitch in at a volunteer car wash washing four cars in one hour. His roommate Joe would take four hours to complete a tax return earning a $100 fee and also can wash four cars in one hour. Both individuals could benefit if
a. Mike worked on tax returns for eight hours and paid Joe $5 for each car he washed b. Mike worked on tax returns for eight hours and paid Joe $10 for each car he washed. c. Mike worked on tax returns for eight hours and paid Joe $15 for each car he washed d. Joe worked on tax returns for eight hours and paid Mike $10 for each car he washed
Which of the following is NOT true about a cartel?
A. Members experience large economies to scale relative to industry demand. B. Members of a cartel will have production quotas. C. Members earn economic profits. D. Cartels will set common prices for their members.
Compared with a system of fixed exchange rates, currency unions are beneficial because they
A. allow every country to have an independent monetary policy. B. restrict what countries can do with fiscal policy. C. allow exchange rates to float. D. eliminate the possibility of speculative attacks.