Use the following table to answer the next question.YearUnemployment Rate (%)Inflation Rate (%)14.03.024.52.535.02.045.53.055.02.5Based on this data, we can conclude ________.
A. the Phillips Curve model is wrong
B. the Phillips Curve model cannot be evaluated
C. the Phillips Curve model is correct
D. the Phillips Curve model is sometimes correct, but does not account for all events
Answer: D
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If activists successfully lobbied government to force firms to produce more output than they normally would in a perfectly competitive market,
A) consumer surplus would decline. B) producer surplus would increase. C) taxation would solve the problem. D) total surplus in the market would decline.
Which of the following is not correct? In a 2006 survey of Ph.D. economists,
a. 47 percent favored eliminating the minimum wage. b. 14 percent would maintain the minimum wage at its current level. c. 38 percent would increase the minimum wage. d. 10 percent would decrease the minimum wage.
When gross private domestic investment exceeds depreciation, it can be concluded that:
A. the economy is exporting more than it imports. B. net investment is positive. C. the economy is importing more than it exports. D. net investment is negative.
In an oligopolistic market, each firm
A. has a constant marginal cost. B. must consider the reaction of rival firms when making a pricing or output decision. C. faces a perfectly elastic demand function. D. produces at minimum average cost in the long run.