If the short-run Phillips curve is fairly horizontal, attempts to fight inflation will generate considerable unemployment
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
In the case of purely flexible exchange rates, a decrease in domestic real income, with constant prices and domestic credit, will lead to
A) an increase in international reserves. B) the depreciation of the domestic currency. C) the appreciation of the domestic currency. D) no change in the value of the domestic currency.
Economists assume that most individuals act as if they are motivated by self-interest and respond in predictable ways to changing circumstances
a. True b. False Indicate whether the statement is true or false
The percentage change in quantity demanded divided by the percentage change in income is referred to as the
a. price elasticity of demand b. income elasticity of demand c. cross-price elasticity of demand d. slope of the demand curve e. demand curve
The fact that travel on buses fell as incomes increased in many cities suggests that
a. bus travel is a normal good b. the law of demand does not apply to bus travel c. bus travel is an inferior good d. there are no good substitute goods for bus travel