A vertical long-run Phillips curve is consistent with
a. the conclusion of Friedman and Phelps, but it is not consistent with the classical idea of monetary neutrality.
b. the classical idea of monetary neutrality, but it is not consistent with the conclusion of Friedman and Phelps.
c. both the conclusion of Friedman and Phelps and the classical idea of monetary neutrality.
d. neither the conclusion of Friedman and Phelps nor the classical idea of monetary neutrality.
c
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In the 1930s the United States charged an average tariff rate
A) that cut its exports to other countries by 50 percent. B) that exceeded 50 percent. C) that was less than its average tariff rate in 2007. D) that was less than 2 percent.
If you own a $1,000 face value bond with one year remaining to maturity and a 3 percent coupon rate and new bonds are paying 9 percent, what is the most you can get for your old bond?
A) $917.43 B) $944.95 C) $970.87 D) $1,000
Which one of the following statements is true?
a. Resources flow from the government to households. b. Resources flow from firms to households. c. Taxes flow from firms to the government. d. Resource payments flow from firms to households e. Imports flow from firms to foreign economies.
According to the equation of exchange, an increase in either velocity or the money supply will
A. cause GDP to rise. B. not affect the price level. C. cause the price level to fall. D. cause GDP to fall.