President Nixon imposed wage and price controls in the early 1970s to curb inflation. Critics argued that the Nixon-imposed controls
a. did not alter the behavior of workers or businesses and therefore could have no long-run effect on curbing inflation
b. worked not only to reduce future expectations of inflation but also economic growth
c. while significantly changing long-run inflation rates, led to unacceptable rates of deflation
d. was accompanied by large government expenditures
e. helped to further heighten market pressures that already existed
A
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Relative purchasing power parity occurs when
A) purchasing power parity holds between every two countries. B) purchasing power parity only holds in recessions. C) the nominal exchange rate is constant. D) the real exchange rate is constant.
Which of the following reflects an investment in human capital?
a. a new labor-saving technology b. a new heath clinic c. a new factory employing more workers d. an increase in consumption per capita e. an increase in fringe benefits, such as paid vacations and overtime pay e. wealthy landowning class and a poor working class
Long-run Phillips curve is a vertical line drawn at the economy's natural rate of ________
a. output level b. unemployment c. inflation d. profit
Voluntarism includes methods for dealing with pollution that
A. carry no legal authority. B. assume the public has been made aware of the environmental damage they are responsible for. C. involve trying to coerce polluters to reduce or eliminate pollution voluntarily. D. rely on neighborhood vigilantism.