In the late 1960s, economist Edmund Phelps published a paper that
a. argued that there was no long-run tradeoff between inflation and unemployment.
b. disproved Friedman's claim that monetary policy was effective in controlling inflation.
c. showed the optimal point on the Phillips curve was at an unemployment rate of 5 percent and an inflation rate of 2 percent.
d. argued that the Phillips curve was stable and that it would not shift.
a
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HydroGrow is considering building a new greenhouse in which to grow tomatoes. The board meets and decides that this is the right thing to do. Before they can put their plans into action, the interest rate increases. The present value of the returns from this investment project
a. is now lower than it was before, and so Hydro Grow is less likely to build the building. b. is now lower than it was before, and so HydroGrow is more likely to build the building. c. is now higher than it was before, and so HydroGrow is less likely to build the building. d. is now higher than it was before, and so HydroGrow is more likely to build the building.
The most important macroeconomics controversy is if market economists are inhertely ________ or ______
Fill in the blank(s) with the appropriate word(s).
A recession is when GDP is falling toward a trough.
a. true b. false
What is the difference between an intermediate good and a final good?
a. Final goods are adjusted for depreciation, intermediate goods are not. b. Final goods are adjusted for changes in the value of the dollar, intermediate goods are not. c. In GDP calculations, final goods are counted as consumption spending, intermediate goods are counted as private investment spending. d. There is no meaningful difference between them. e. Final goods are finished and ready for sale; intermediate goods require further processing.