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.
Answer: B
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A consumer cannot gain consumer’s surplus if she purchases more than one unit of a good.
Answer the following statement true (T) or false (F)
An decrease in supply is caused by a decrease in the price of the product
Indicate whether the statement is true or false
A long contract requires that the investor
A) sell securities in the future. B) buy securities in the future. C) hedge in the future. D) close out his position in the future.
In a two-period model with production, a decrease in the world real interest rate
A) increases the current account surplus and increases real output. B) reduces the current account surplus and increases real output. C) increases the current account surplus and reduces real output. D) reduces the current account surplus and reduces real output.