Explain the connection between the vertical long-run aggregate supply curve and the vertical long-run Phillips curve
Both reflect the classical dichotomy. The vertical long-run aggregate supply curve says that, in the long run, the economy will be at its natural rate of output, and that this is the same no matter what the price level. The natural rate of output depends on the natural rate of unemployment. The vertical Phillips curve says that, in the long run, the economy will be at the natural rate of unemployment (corresponding with the natural rate of output), and that this is the same no matter what the inflation rate. Both curves are consistent with the classical dichotomy that says real variables are not affected by nominal variables.
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The IT industry in Techland has a Herfindahl-Hirschman Index of 1,320. This implies that the IT industry in Techland is ________
A) not concentrated B) moderately concentrated C) highly concentrated D) dominated by a few large buyers
National saving minus private saving is equal to
A) the government surplus. B) private disposable income. C) the current account deficit. D) interest on the government debt.
In the Keynesian model, and expected increase in the interest rate
a. increases the demand for bonds and the demand for money. b. increases the demand for bonds and the demand for stocks. c. decreases the demand for bonds and increases the demand for money. d. increases the demand for bonds and decreases the demand for money.
In examining incomes of free southerners prior to the Civil War, Walton and Rockoff conclude that, compared with northerners, free southerners were ______
a. at least 50% poorer than northerners. b. far richer than northerners, except in the old South. c. doing fairly well, even in the old South. d. far richer than northerners but a downward trend was noticeable.