The short-run Phillips curve is based on the assumption of:
a. a direct relationship between the inflation rate and unemployment.
b. an inverse relationship between the inflation rate and unemployment.
c. no relationship between the inflation rate and unemployment
d. a permanent trade-off between the inflation rate and unemployment.
b
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How is leisure treated in the calculation of GDP of an economy? Does such a calculation imply that GDP is good measure of well-being? Why or why not?
What will be an ideal response?
Refer to Figure 13.1. If the voting method used to select a location for the recreation center is the plurality-rule method, the recreation center will be built in
A) Desert Sands. B) Glacier Cove. C) Mountain View. D) Oceanside.
Milk can be used to make yogurt or cheese. Other things equal, if consumers start demanding more yogurt,
a. the price of milk will fall. b. less milk will be used in cheese and more will be used in yogurt. c. the supply of milk will decrease. d. the price of cheese will fall. e. all of the above.
Refer to the two diagrams for individual firms. In Figure 1 line B represents the firm's:
A. demand and marginal revenue curves.
B. demand curve only.
C. marginal revenue curve only.
D. average revenue curve only.