The Samuelson-Solow version of the Phillips curve states that
A) there is an inverse relationship between the wage inflation rateand unemployment
B) there is a direct relationship between the wage inflation rateand unemployment.
C) there is an inverse relationship between price inflation andunemployment.
D) there is a direct relationship between price inflation and unemployment.
E) a and b
C
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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
You're called in as a consultant: Price is $24 . At a production level of 200 units, MC = MR, AFC = $6, and AVC = $16 . What do you advise this firm to do?
a. Increase output. b. Decrease output. c. Shut down operations. d. Stay at 200 units; the firm is earning $400 profit. e. Stay at 200 units; the firm is minimizing losses of $200.
The market equilibrium quantity:
A. is sometimes the socially optimal quantity. B. maximizes total economic surplus. C. is the socially optimal quantity. D. is not the socially optimal quantity.
Figure 10-8
Figure 10-8 describes which of the following periods in the U.S.?
a.
1930s
b.
1973-1975
c.
late 1990s
d.
2007-2009