Along an actual (observed) Phillips curve,
A. aggregate output varies inversely with the unemployment rate.
B. aggregate output directly inversely with the inflation rate.
C. the inflation rate varies inversely with the unemployment rate.
D. the inflation rate varies directly with the unemployment rate.
Ans: C. the inflation rate varies inversely with the unemployment rate.
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Refer to the above figure. The top two arrows of the figure refer to the product markets. The bottom arrows refer to the factor markets. Which arrow represents factor services?
A) Arrow A B) Arrow B C) Arrow C D) Arrow D
Gordon characterizes Modigliani as a prominent activist yet several implications of his life cycle hypothesis support the non-activists. One of these implications is
A) transitory increases in income associated with the business cycle are not expected to last a lifetime so current consumption is relatively stable. B) permanent increases in income associated with the business cycle are not expected to last a lifetime so current consumption is relatively stable. C) transitory increases in income associated with the business cycle are not expected to last a lifetime so current consumption is relatively unstable. D) transitory increases in income associated with the business cycle are to last a lifetime so current consumption is relatively stable.
Which of the following statements is true about patents and copyrights? (i) They have benefits and costs. (ii) They lead to higher prices. (iii) They enhance the ability of monopolists to earn above-average profits
a. (i) and (ii) only b. (ii) and (iii) only c. (ii) only d. (i), (ii), and (iii)
An efficient tax for a product with detrimental externalities would equal
A. marginal social cost minus marginal external cost. B. marginal private cost plus marginal external cost. C. marginal external cost minus marginal private cost. D. marginal social cost minus marginal private cost.