One implication of the Phillips curve analysis is that:
a. unemployment rates below the natural rate are only possible in the long run
b. unemployment rates below the natural rate lead to falling rates of inflation in the long run.
c. if inflationary expectations are accurate, the economy is on the short-run Phillips curve but not on the long-run Phillips curve.
d. unemployment rates below the natural rate may be achieved only with rising inflation rates.
e. the natural rate of unemployment is strictly a short-run phenomenon.
d
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Relative to simple pricing, price discrimination leads to
a. Consumer surplus being converted to producer surplus b. Increased profits c. A simplified pricing schedule d. Both a and b
The majority of economists believe that future innovations will not be transformational enough to sustain high economic growth rates in the U.S. and western Europe
a. True b. False Indicate whether the statement is true or false
Explain how the aggregate demand and aggregate supply model can be made more dynamic
What will be an ideal response?
The Great Recession occurred in
A. 1970-74 B. 1985-87 C. 1992-94 D. 2007-09