Monetarists argue that the long-run Phillips curve is negatively sloped
a. True
b. False
Indicate whether the statement is true or false
False
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When Mary earned $3,200 per month, she bought 2 concert tickets each month. Now her monthly income is $5,600, and the number of concert tickets she purchases has risen to 3 per month
Mary's income elasticity of demand for concert tickets equals ________ and the tickets are a(n) ________ good for Mary. A) -1.36; normal B) -0.21; inferior C) +0.21; complementary D) +0.73; normal
According to the rational expectations theory, which of the following will affect the levels of output and employment?
a. expansionary monetary policy that is fully anticipated b. contractionary monetary policy that is fully anticipated c. changes in monetary policy that are unanticipated d. changes in fiscal policy that are anticipated
Assume that the central bank lowers the discount to increase the nation's monetary base. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and monetary base in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. The real risk-free interest rate rises and monetary base rises. b. The real risk-free interest rate falls and monetary base falls. c. The real risk-free interest rate rises and monetary base falls. d. The real risk-free interest rate and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
As the number of sellers in an oligopoly becomes very large,
a. the quantity of output approaches the socially efficient quantity. b. the price approaches marginal cost. c. the price effect is diminished. d. All of the above are correct.