"The short-run Phillips curve is vertical at the natural unemployment rate." Is the previous statement correct or incorrect?
What will be an ideal response?
The statement is incorrect. The long-run Phillips curve is vertical at the natural unemployment rate but the short-run Phillips curve is downward sloping.
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What role do households play in the capital market? What role do firms play?
What will be an ideal response?
It appears that many business firms discriminate against hiring young women of child bearing age in the United States and that this type of discrimination has been reduced in Europe
This may be an example of successful government intervention because A) many European governments have laws against this type of discrimination. B) many European governments subsidize maternity leave and child care, lowering the cost of hiring these women. C) Europeans are less likely to discriminate on the basis of gender. D) Europeans are more likely to discriminate on the basis of gender.
Between the 1921 recession and 1929, the U.S. economy was described as healthy. Which of the following changes in economic indicators is correctly stated and supports this claim?
(a) Real Gross Domestic Product (RGDP) increased per capita (b) There were increases in real income but they were more unequally distributed (c) Consumer spending on credit increased dramatically (d) There was a decline in total building construction
The corporate income tax is the single largest source of revenue for the federal government
a. True b. False Indicate whether the statement is true or false