Both classicals and Keynesians agree that policymakers
A) can exploit the Phillips curve in the short run.
B) cannot exploit the Phillips curve in the short run.
C) can keep the unemployment rate permanently below the natural rate by permanently running a high rate of inflation.
D) cannot keep the unemployment rate permanently below the natural rate by permanently running a high rate of inflation.
D
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The best weather in a decade has given Australia a bumper wheat crop. Australia is a small open economy. Based on this information alone, you would expect that
A) desired investment would decrease. B) desired investment would increase. C) the current account would increase. D) the current account would decrease.
The measurement of economic growth cannot take into account
A) the service sector of an economy. B) productive activity in an economy. C) cultural aspects of life in a country. D) differences in inflation rates across countries.
Innovation is the process of turning an invention into a marketable product
a. True b. False
Suppose a company that produces mouthwash branches out into producing toothpaste. If this expansion reduces the average cost per unit, the company must
a. benefit from vertical integration b. benefit from horizontal integration c. experience economies of scale d. experience economies of scope e. have no transaction costs