According to the short-run Phillips Curve, there is a trade-off between
(a) interest rates and inflation
(b) the growth of the money supply and interest rates
(c) unemployment and economic growth
(d) inflation and unemployment
(e) economic growth and interest rates
Answer: (d) inflation and unemployment
You might also like to view...
Which of the following goods would be considered legally non-excludable?
Define the following terms. Give a complete and precise definition in one sentence. a. total utility b. marginal utility c. consumer’s surplus d. “law” of demand
What will be an ideal response?
According to the J curve, the rapid depreciation in the dollar from 1985 to 1987 caused net exports to
A) rise in the short run and fall in the long run. B) rise in the short run and rise further in the long run. C) fall in the short run and rise in the long run. D) fall in the short run and fall further in the long run.
Inefficient allocation of resources occurs when
A. no one can be made better off without having someone else give up something. B. it is possible to make some people better off without making others worse off. C. society is operating at a point high on the production possibilities frontier. D. society is operating at a point low on the production possibilities frontier.