According to Milton Friedman, the reason there are two Phillips curves is because
A) the expected inflation rate is always higher than the actual inflation rate.
B) wages are inflexible.
C) prices are inflexible.
D) the expected inflation rate does not instantaneously adjust to changes in the actual inflation rate.
E) the expected inflation rate is equal to 1 minus the actual inflation rate.
D
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Suppose an economy of five people has a national income of $100,000 . and each individual earns $20,000 . The Gini coefficient for this economy is
a. one b. zero c. between 1.0 and 0.5 d. between 0 and 0.5 e. not enough information is given
If both the supply and demand curves shift to the left, then we can conclude that there will be
a. an increase in the equilibrium quantity sold. b. a decrease in the equilibrium quantity sold. c. an increase in the equilibrium price. d. a decrease in the equilibrium price.
The residents of Ireland earn $200 million of income from abroad. Residents of other countries earn $300 million in Ireland. Therefore, Ireland's
a. net factor payments from abroad are positive, and its GDP is larger than its GNP. b. net factor payments from abroad are positive, and its GNP is larger than its GDP. c. net factor payments from abroad are negative, and its GDP is larger than its GNP. d. net factor payments from abroad are negative, and its GNP is larger than its GDP.
A price ceiling that is set below the equilibrium price will result in:
A. a shortage of the good. B. a surplus of the good. C. higher total economic surplus. D. higher producer surplus.