The basic problem portrayed by the traditional Phillips Curve is:
A. that a level of aggregate demand sufficiently high to result in full employment may also
cause inflation.
B. that changes in the composition of total labor demand tend to be deflationary.
C. that unemployment rises at the same time the general price level is rising.
D. the possibility that automation will increase the level of noncyclical unemployment.
A. that a level of aggregate demand sufficiently high to result in full employment may also
cause inflation.
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As more efficient capital equipment becomes available, the demand for labor will ________, the real wage will ________, and the quantity of labor hired will ________
A) increase; increase; increase B) increase; decrease; remain the same C) increase; remain the same; decrease D) increase; remain the same; increase
For which of the following individuals would the opportunity cost of going to college be highest?
a. a promising young mathematician who will command a high salary once she earns her college degree b. a student with average grades who has never held a job c. a famous, highly-paid actor who wants to take time away from show business to finish college and earn a degree d. a student who is the best player on his college basketball team, but who lacks the skills necessary to play professional basketball
The expenditure schedule will shift upward when
A. investment falls. B. the price level rises. C. net exports decrease. D. autonomous consumption increases.
Appeals to fairness can be made by
A. both those in favor of and those against government intervention to reduce inequality. B. only those against government intervention to reduce inequality. C. neither those in favor of nor those against government intervention to reduce inequality. D. only those in favor of government intervention to reduce inequality.