The long-run Phillips curve assumes that every unemployed worker who is looking for a job has a constant reservation wage
a. True
b. False
Indicate whether the statement is true or false
False
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The short-run simulative effect of a government budget deficit on real GDP is stronger with ________ financing, since this ________ the crowding out effect of the deficit
A) bond, enhances B) bond, eliminates C) money, enhances D) money, eliminates
Which of the following objectives is NOT a basis for international trade?
A. To gain from economies of scale. B. To obtain goods that would be unavailable otherwise. C. To obtain goods at lower prices than would be possible if they were produced domestically. D. To increase Treasury reserves of gold bullion.
Any deviation from the efficient scale of production would result in a(n): a. decreased marginal cost
b. increased marginal cost. c. increased average total cost. d. decreased average total cost.
Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply. B. a reduction in aggregate demand. C. an increase in long-run aggregate supply. D. an increase in aggregate demand.