If the long-run Phillips curve is vertical, then any government policy designed to lower
a. unemployment will not change the unemployment rate but it will increase the inflation rate
b. unemployment will lower it but also will lower the inflation rate
c. inflation will cause employment to rise
d. unemployment will not lower it and will end up raising the rate of inflation
e. unemployment will be effective but it will also cause the inflation rate to rise
A
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A 10 percent increase in income brings about a 15 percent decrease in the demand for a good. What is the income elasticity of demand and is the good a normal good or an inferior good?
What will be an ideal response?
Which of the following would increase aggregate demand?
a. A deficit in the government budget b. An increase in taxes c. An increase in government borrowing d. A surplus in the government budget e. A decrease in government spending
Consider the production possibilities curve [PPC] for a country producing only cheese and wine. The first few resources transferred from cheese to wine production are:
a. those that are most specialized in cheese production.
b. those that are most specialized in wine production.
c. those that are least specialized in cheese production.
d. those that are neither specialized in cheese nor wine production.
e. those that are highly specialized in both cheese and wine production.
All of the following except ___________ are bases for judging job analysis.
A. currency B. acceptability C. cost D. usefulness