Current thinking on the Phillips curve suggests that it would be best for policy makers to:
a. focus on controlling unemployment.
b. stimulate permanent shifts in aggregate supply
c. focus on controlling inflation.
d. stimulate permanent shifts in aggregate demand.
e. develop a two-pronged policy to control both unemployment and inflation.
c
You might also like to view...
Which of the following is an example of a physical capital?
A) A factory B) A worker C) A stock D) A bond
What is the relationship between the marginal product of labor and the marginal cost?
What will be an ideal response?
Activists believe that monetary and fiscal policy will only work if it comes as a surprise to the public
a. True b. False Indicate whether the statement is true or false
The real interest rate is calculated as the
a. expected rate of inflation divided by the nominal interest rate b. real GDP plus the expected rate of inflation c. nominal interest rate minus real GDP d. nominal interest rate minus the expected rate of inflation e. real GDP multiplied by the expected rate of inflation