In the short run, the Phillips Curve indicates a(n):
a. inverse relationship between inflation and unemployment.
b. direct relationship between inflation and unemployment.
c. inverse relationship between GDP and unemployment
d. direct relationship between GDP and unemployment.
a
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According to the text, approximately what percentage of U.S. net public debt is held by foreign residents?
A) 50% B) 20% C) 90% D) 800%
Prior to 1970, mortgages were ________ resold in the secondary market
A) never B) often C) rarely D) always
At long-run equilibrium inflation ________ and output equals ________.
A. equals the value determined by part expectations and pricing decisions; the level of short-run equilibrium output consistent with that inflation rate B. equals the value consistent with potential output; the level of output consistent with zero inflation C. is stable; potential D. equals the value determined by past expectations and pricing decisions; potential
Suppose that a town has two major bottling plants. One of these bottling plants is unionized and the union has just negotiated a 7% wage increase each year for the next two years. Which of the following is most likely to occur?
A. The only effect will be that the price charged by the unionized bottling plant will increase to cover the additional costs of labor. B. The price of labor will change in both the unionized and nonunionized bottling plants, but no other input markets will be affected. C. The price of labor will change in both the unionized and nonunionized bottling plants. Employment of labor and other inputs is also likely to change in both bottling plants. D. The price of labor in the unionized bottling plant will increase, but there will be no changes in the price of labor in the nonunionized bottling plant.