A vocal minority of economists, believers in the theory of rational expectations, insist that
A. the Phillips curve is downward sloping even in the short run.
B. the Phillips curve is vertical even in the short run.
C. a trade-off exists between inflation and unemployment even in the long run.
D. expansionary fiscal and monetary policy can reduce unemployment without creating inflation.
Answer: B
You might also like to view...
Jobs lost to outsourcing can be partially offset by jobs gained from
A) increased output from another industry. B) greater trade imbalances. C) higher opportunity costs. D) higher production costs.
If the baseball team can sell 6000 box-seat tickets when they set the price at $10 and 7000 box-seat tickets when they lower the price to $8, the marginal revenue per ticket between 6000 and 7000 tickets is
A) $60,000. B) $56,000. C) $9. D) $2. E) minus $4.
Suppose on any given day the prevailing equilibrium federal funds rate is above the Federal Reserve's federal funds target rate
If the Federal Reserve wishes for the federal funds rate to be at their target level, then the appropriate action for the Federal Reserve to take is a ________ open market ________, everything else held constant. A) defensive; sale B) defensive; purchase C) dynamic; sale D) dynamic; purchase
Under a system of floating exchange rates, a surplus in a currency will lead to a(n)
A. long-term surplus of that currency. B. depreciation of that currency. C. appreciation of that currency. D. long-term shortage of that currency.