Which of the following does the long-run Phillips curve tell us?
a. That the Fed can select any rate of unemployment it wants in the long run
b. That the Fed can select any rate of inflation and unemployment rate it wants in the long run
c. That the Fed can select neither the rate of inflation nor the rate of unemployment in the long run
d. That there is a tradeoff between the rate of inflation and the rate of unemployment in the long run
e. That the Fed can select any rate of inflation it wants in the long run
E
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For the economy as a whole,
a. income must be greater than expenditure. b. unemployment must rise when GDP rises. c. expenditure must equal income. d. consumption must be greater than investment.
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What will be an ideal response?
Whenever the ratio of marginal products to input prices differs across inputs,
A. no change will necessarily follow because the process could still be at peak efficiency. B. a firm's costs could be reduced by shifting input usage toward the input with the lower marginal product to price ratio. C. the marginal products of inputs will adjust as input combinations change to correct for the inefficiency. D. the costs of the inputs adjust to bring the marginal product ratios and cost ratios together.
If an automobile manufacturer has an agreement with its air bag? supplier, this is an example of a? ________ agreement.
A) rightward
B) vertical
C) horizontal
D) leftward