In terms of the Phillips curve, the experience of the 1970s indicates that macro-policy
a. can permanently reduce unemployment if we are willing to tolerate higher inflation.
b. can reduce unemployment in the long run if we are willing to tolerate higher inflation.
c. may be able to reduce unemployment but cannot retard inflation.
d. may be able to reduce unemployment in the short run, but there is little evidence that expansionary policies can reduce unemployment permanently.
D
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If workers and firms expect that inflation will be 3 percent next year, and real wages are not changing over time, by how much will nominal wages increase?
A) more than 3 percent B) 3 percent C) less than 3 percent D) depends on actual inflation for next year
To differentiate between nominal GDP and real GDP in the year 2000 we need to know all except
a. the quantity of goods produced in 2000 b. the price level in 2000 c. the quantity of goods and services produced in the base year d. the quantity of services produced in 2000 e. the price level in the base year
The marginal revenue curve for a monopolist is the same as its demand curve
a. True b. False Indicate whether the statement is true or false
When I benefit from my neighbors cleaning up their yard, I am experiencing a(n):
A. economic pressure. B. merit good. C. positive externality. D. partnership.