Milton Friedman argued that there
A) are two Phillips curves, a short-run one and a long-run one.
B) are three Phillips curves, a short-run one, a long-run one, and one in stagflation.
C) is one Phillips curve, and it is vertical.
D) is one Phillips curve, and it is nearly flat or horizontal.
A
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If the wage rate doesn't change but a profit-maximizing competitive firm hires fewer workers, we know that
A) the price of the product increased. B) technical change occurred that increased labor productivity, reducing the firm's demand for labor. C) demand for the product fell or there has been a reduction in labor productivity. D) marginal factor cost increased.
A perfectly elastic demand curve is
a. a vertical straight line b. a horizontal straight line c. a downward-sloping straight line d. an upward-sloping straight line e. not a straight line
Excess capacity and inefficiency result under monopolistic competition.
Answer the following statement true (T) or false (F)
Consider an economy that is in short-run equilibrium with unemployment below the natural rate. According to the passive approach, low unemployment will eventually cause wages to fall, lowering the firms' cost of doing business
Indicate whether the statement is true or false