A.W. Phillips's discovery of a particular relationship between unemployment and inflation for the United Kingdom
a. could not be extended to other countries, despite many researchers' attempts to provide that extension.
b. was quickly extended to other countries by researchers.
c. was extended to only one other country — the United States.
d. was harshly criticized by the American economists Paul Samuelson and Robert Solow on the grounds that Phillips's study was fundamentally flawed.
b
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Can a country have comparative advantage in all products?
What will be an ideal response?
Suppose the economy's production function is Y = AK0.3N0.7. Suppose K = 200, N = 2000, and A = 1. Calculate the marginal product of capital
A) 1.0 B) 1.5 C) 2.0 D) 2.5
If the government cuts taxes by $200 million and simultaneously decreases government spending by $200 million, then
A. Aggregate demand will decrease by $200 million. B. Aggregate demand in the economy will remain unchanged. C. Aggregate demand will rise because the government decrease in purchases occurs so slowly. D. People will spend only part of their tax cut, so aggregate demand will eventually rise by $200 million.
For a monopoly producing any output level greater than one, the average revenue curve:
A. lies above the demand curve. B. lies below the demand curve. C. lies above the marginal revenue curve. D. is the same as the marginal revenue curve.