Experience with the Phillips curve since the 1970s has shown that the:
a. curve can be used as a reliable model to guide public policy.
b. relationship between the inflation rate and the unemployment rate moves in a clockwise direction.
c. curve is not stable.
d. inflation rate and the unemployment rate are equal.
c
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Both the social sciences and the natural sciences employ ________ to help them understand the world around them
A) models B) designs C) traditional thinking D) implications
Which of the following provides the best explanation of why low-income countries generally remain poor?
a. Their institutional arrangements and policies often discourage productive activity and reduce the potential gains from specialization and exchange. b. They are oppressed by developed nations that benefit from the cheap goods available from countries with low wage rates. c. They are poorly endowed with natural resources, which are essential for long-term rapid growth. d. When the average income level is low, workers have little incentive to earn higher incomes.
Production is efficient if the economy is producing at a point
a. on the production possibilities frontier. b. outside the production possibilities frontier. c. on or inside the production possibilities frontier. d. inside the production possibilities frontier.
Hostile takeovers of corporations have been in the business news for some time now. Several states have passed laws making it harder for out-of-state corporations to acquire firms headquartered in their states. Several corporations have established “golden parachutes” to give executives high payoffs in case of hostile takeover. What market imperfection is likely to be worsened by these actions? Explain.
What will be an ideal response?