The Phillips curve is a statistical relationship that was misrepresented as showing
a. disequilibrium outcomes of uncoordinated policy.
b. alternative equilibrium points that the economy could achieve.
c. the unemployment rates necessary to close a recessionary gap.
d. the increases in interest rates from different inflation rates.
b
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When using the income approach to calculate nominal GDP, you should ________.
A. subtract transfer payments B. add transfer payments C. subtract indirect business taxes D. add indirect business taxes
Chinese exports of toys and footwear can be explained by factor endowments, while Chinese exports of telecommunications equipment and computers and accessories can be explained by product-cycle analysis
Indicate whether the statement is true or false
A critical assumption made by all economic models is that
a. few economic decision makers face constraints under capitalism b. few economic decision makers face constraints under communism c. every economic decision maker, except the extremely wealthy, faces constraints d. every economic decision maker, except the federal government, faces constraints e. every economic decision maker faces constraints under every economic system
If the Federal Reserve Bank wants to lower the supply of money, it sells government bonds from its portfolio to the public in the nation’s bond markets.
Answer the following statement true (T) or false (F)