The Phillips curve illustrates the
A. Inverse relationship between the price level and the level of output.
B. Direct relationship between the unemployment rate and the inflation rate.
C. Inverse relationship between the unemployment rate and the inflation rate.
D. Direct relationship between the price level and the level of output.
Answer: C
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A common source of diseconomies of scale is the
A) diminishing marginal returns to capital. B) diminishing marginal returns to labor. C) diminishing marginal returns to land. D) growing complexity of management and organizational structure.
When comparing across countries, the higher the rate of saving
A) the lower the level of per capita real Gross Domestic Product (GDP). B) the higher the level of per capita real Gross Domestic Product (GDP). C) the less industrialized the country. D) the lower the productivity rates.
Suppose Country A, a labor-abundant country, produces only wheat and cloth. The following equations illustrate the prices and costs of wheat and cloth in the country. The numbers indicate the amounts of labor and land needed to produce a unit of wheat and cloth. 'W' is the wage rate and 'r' is the rental rate of land.Price of wheat = 1w + 2rPrice of cloth = 2w + 1rIf the initial prices of wheat and cloth are $3 per unit, the labor cost per unit of cloth output is ________ and the rental cost per unit of cloth output is
A. $1; $2. B. $3; $1. C. $2; $1. D. $1; $3.
In international trade, all payments and gifts that are related to the purchase or sale of both goods and services are referred to as the
A) current account. B) financial account. C) labor account. D) official reserve transactions account.