Refer to Figure 17-5. Consider the Phillips curves shown in the above graph. We can conclude from this graph that
A) the expected rate of inflation in this economy is 10 percent.
B) ceteris paribus, a fall in the rate of inflation to 5 percent will increase unemployment to 7.5 percent in the short run.
C) the natural rate of unemployment in this economy is 5.5 percent.
D) All of the above are correct.
D
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According to the ________, as long as property rights are clearly defined, two agents can always bargain to reach the efficient outcome
A) Coase theorem B) Ricardian theory on rent C) revenue-equivalence theorem D) envelope theorem
Which branch of economics considers that economic agents do not always act rationally?
A) Microeconomics B) Macroeconomics C) Behavioral economics D) Econometrics
Refer to Table 9-11. Which country has a comparative advantage in producing clocks?
A) Belize B) Denmark C) both countries D) neither country
An increase in the price level
A) shifts the AD curve to the right. B) shifts the AD curve to the left. C) causes an upward movement along the existing AD curve. D) causes a downward movement along the existing AD curve. E) a and c