According to economist Milton Friedman,
a. the short-term validity of the Phillips curve is questionable
b. there might be a short-term trade-off between unemployment and inflation but not a permanent trade-off.
c. trade-off happens between unemployment and inflation happens in the long run but not in the short run.
d. the long-run trade-off between unemployment and inflation comes from unanticipated inflation.
b
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Many fast-food restaurants have signs on their cash registers that read, "Your meal is free if the cashier does not give you a receipt". What might be the purpose of such a sign? Hint: there is a moral hazard problem here
What will be an ideal response?
Which of the following is not correct?
A. Where marginal product is greater than average product, average product is rising. B. Where total product is at a maximum, average product is also at a maximum. C. Where marginal product is zero, total product is at a maximum. D. Marginal product becomes negative before average product becomes negative.
Answer the following statements true (T) or false (F)
1) Saving is low in many DVCs primarily because income is very equally distributed. 2) The differences in the per capita incomes of the IACs and the DVCs have diminished sharply since the Second World War because of U.S. aid programs. 3) If the real outputs per capita of a rich nation and a poor nation grow at the same percentage rate, the absolute income gap between the two nations will shrink. 4) Capital flight refers to the fact that many DVCs must use their export earnings to pay interest on their outstanding external debts.
One theory of unemployment argues that the unemployment rate will rise when
a. people have accurate expectations regarding the inflation rate. b. unexpected inflation causes people to be "fooled" by high absolute wages. c. people mistakenly believe their wages have greater purchasing power. d. people overestimate the rate of inflation.