The long-run Phillips curve is a vertical line because
A) there is no relationship between the natural unemployment rate and the inflation rate.
B) real GDP does not depend on the unemployment rate.
C) in the long run, the natural unemployment rate increases when inflation increases.
D) the unemployment rate decreases when the inflation rate increases.
E) the natural unemployment rate only depends on the inflation rate.
A
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In general, during the business cycle, when economic activity is peaking:
a. interest rates begin to creep higher b. unemployment levels are low c. inflation begins to edge higher d. all of the above
"Ceteris paribus" is a Latin expression that essentially means "holding everything else constant."
a. True b. False Indicate whether the statement is true or false
Which of the following explains why flood control is a public good?
A. It is not divisible and therefore cannot be kept from people who do not pay. B. Flood control is paid for by taxpayers. C. There are external benefits associated with its consumption. D. The private sector usually produces flood control projects.
Refer to the information provided in Figure 13.9 below to answer the question(s) that follow. 
Figure 13.9 Refer to Figure 13.9. If Ohio Edison is forced to act as a perfect competitor (instead of the monopoly level), the net social gain is
A. FGBC. B. FABE. C. BEC. D. ACF.