The inflation associated with the oil embargoes of the 1970s illustrated the _____ of the downward-sloping Phillips curve in the long run, as unemployment _____ during this period
a. validity; fell
b. validity; rose
c. fallacy; rose
d. fallacy; fell
e. fallacy; did not change
c
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Based on this information, what would be the national standard for an allocatively efficient abatement?
Hypothetically, suppose a recent study of hazardous waste abatement (A) arrives at the following national estimates for abating chemical solvents: MSB = 100 – 0.75A and MSC = 20 + 0.50A, where A is measured in millions of tons per year, and costs are measured in millions of dollars.
In the long run the real interest rate is determined by ________, and in the short-run the Federal Reserve can control the real interest rate by setting the nominal interest rate if inflation adjusts ________.
A. saving and investment; quickly B. the Federal Reserve; slowly C. saving and investment; slowly D. the Federal Reserve; to equal the increase in the money supply
Which of the following examples shows an expanding market?
a. The quantity of wool produced remains steady. b. Several firms enter the corn market, while many firms exit. c. The amount of resources invested in the organic egg market decreases. d. The equilibrium price for cell phones decreases.
The price elasticity of demand for senior citizens purchasing coffee from McDonald's is ?5, while non-senior citizens have a price elasticity of demand equal to ?1.25. If it costs McDonald's $0.02 to produce a coffee, the optimal price for a cup of coffee for non-senior citizens and the resultant marginal cost under third-degree price discrimination are:
A. $0.10 and $0.02. B. $0.004 and $0.02. C. $10 and $0.20. D. $0.02 and $0.80.