The long-run Phillips curve indicates that
A) potential GDP can never be achieved.
B) there is no way to control the inflation rate in the long run.
C) any inflation rate is possible at the natural unemployment rate.
D) any unemployment rate is possible at the natural inflation rate.
E) there is a tradeoff between the inflation rate and the unemployment rate in the long-run.
C
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If the dollar depreciates against the Indian rupee,
A) Indian imports to the U.S. become less expensive. B) The value of Indian imports to the United States does not change. C) U.S. exports to India become less expensive. D) U.S. exports to India become more expensive.
All of the following are deficit items in the balance of payments accounts EXCEPT
A) U.S. residents purchases of gold from foreign residents. B) U.S. tourists spending funds in Europe. C) exports of merchandise. D) U.S. purchases of foreign companies' stocks and bonds.
Most monetarists favor:
a. frequent changes in the growth rate of the money supply to avoid inflation. b. placing the Federal Reserve under the Treasury. c. a steady, gradual shrinkage of the money supply. d. a constant increase in the money supply year after year equal to the potential annual growth rate in real GDP.
A monopoly may breed inefficiency by reducing competition and restricting production
a. True b. False Indicate whether the statement is true or false