Classical macroeconomists argue that the short-run Phillips curve ________ represent a usable trade-off for policymakers because ________.
A. does not; people do not have rational expectations
B. does not; people have rational expectations
C. does; people do not have rational expectations
D. does; people have rational expectations
Answer: B
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In the figure above, with the tariff the United States imports ________ million shirts per year
A) 24 B) 8 C) 32 D) 16
Refer to Scenario 2.1. If P = $25, which of the following is true?
A) There is a surplus equal to 30. B) There is a shortage equal to 30. C) There is a shortage, but it is impossible to determine how large. D) There is a surplus, but it is impossible to determine how large.
The nutritional information now available at many fast food restaurants is an example of:
A. a failed attempt by government to reduce information asymmetry. B. requiring the more informed party to reveal the missing information. C. government regulation to screen out unhealthy food for consumers. D. government requiring the restaurants to signal whether food is healthy or not.
Which of the following will not shift the aggregate demand cure to the left?
a. Consumers become more optimistic about the future. b. Government spending decreases. c. Business optimism decreases. d. Consumers become pessimistic about the future.