If the Phillips curve was nearly horizontal, a:
a. substantial increase in inflation would be caused by a decrease in unemployment
b. substantial decrease in inflation would be caused by a decrease in unemployment.
c. substantial decrease in unemployment could be achieved with only a small increase in inflation.
d. substantial increase in unemployment could be achieved with only a small increase in inflation.
c
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In the general textbook treatment, the firm's short run average variable and average total cost curves are U-shaped, while the average fixed cost curve is downward sloping over the entire range of output. Explain why
What will be an ideal response?
At a given output level, a temporary reduction in government purchases will
A) increase desired saving, causing the IS curve to shift down and to the left. B) increase desired saving, causing the IS curve to shift up and to the right. C) decrease desired saving, causing the IS curve to shift down and to the left. D) decrease desired saving, causing the IS curve to shift up and to the right.
The ______________ Resource Model illustrated in the book shows the interdependence of resources, how they exchange
a. Foa & Foa b. Elbing c. Hertford & Myers d. Eccles & Ward
Given a downward-sloping aggregate demand curve, if short-run aggregate supply increases, real GDP must increase and nominal GDP must fall
a. True b. False Indicate whether the statement is true or false