If employees and employers always accurately forecast inflation, what is the shape of the Phillips curve?
a. It is vertical in the short run, and upward sloping in the long run.
b. It is downward sloping in the short run, and vertical in the long run.
c. It is upward sloping in the short run, and horizontal in the long run.
d. It is vertical in the short run and long run.
d
You might also like to view...
If a 5 percent reduction in the price of a commodity results in a 3 percent increase in the quantity demanded, demand is said to be
a. perfectly elastic. b. elastic. c. unit elastic. d. inelastic. e. perfectly inelastic.
The Mayor of Stuckeyville is considering increasing the tax on bowling. He is confident that tax revenues will increase but recognizes the possibility that they may decrease. The mayor is engaging in
A) dynamic tax analysis. B) static tax analysis. C) a policy that will cause the tax base to increase. D) a policy that will cause the tax base to remain unchanged.
Compared to LDCs, NICs have relatively _____ per capita GDPs.
Fill in the blank(s) with the appropriate word(s).
Entitlements and net interest are the ________ the U.S. federal budget.
A. only two declining components of B. two fastest-growing components of C. two slowest-growing components of D. only two components with negative values in