When it was introduced in 1958, the Phillips curve presented policymakers with a "menu" from which they could choose the appropriate:
a. combination of monetary and fiscal policy.
b. combination of inflation and unemployment.
c. level of aggregate money supply.
d. income tax rate.
b. combination of inflation and unemployment.
You might also like to view...
A fifty cent tax imposed on a pack of cigarettes is _____
a. a unit tax b. an ad valorem tax c. a retail sales tax d. relatively cheap
When a market consists of a few large firms and barriers to entry exist, it:
A. must be perfectly competitive. B. is likely an oligopoly. C. must be monopolistically competitive. D. is likely a monopoly.
Does the movement of workers from other countries to the U.S. affect the demand for labor in the U.S., or does it affect the supply of labor in the U.S.?
The hypothesis suggesting that people combine the effects of past policy changes on economic variables with their own judgment about the future effects of current and future economic policy is referred to as the
A. passive expectations hypothesis. B. adaptive expectations hypothesis. C. rational expectations hypothesis. D. active expectations hypothesis.