In the long run, unemployment will be at the natural rate. This implies that
A. there is a one-to-one relationship between unemployment and inflation and consequently, the Phillips curve is vertical.
B. there is no relationship between unemployment and inflation and consequently, the Phillips curve is vertical.
C. there is a positive relationship between unemployment and inflation and consequently, the Phillips curve is upward-sloping.
D. there is a negative relationship between unemployment and inflation and consequently, the Phillips curve is downward-sloping.
Ans: B. there is no relationship between unemployment and inflation and consequently, the Phillips curve is vertical.
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List five shortcomings of GDP which result in GDP not accurately measuring a country's well being
What will be an ideal response?
The "excess" growth rate of the money supply is the growth rate of money
A) plus the long-run growth rate of velocity. B) minus the long-run growth rate of velocity. C) plus the long-run growth rate of real GDP. D) minus the long-run growth rate of real GDP.
At Point C the price elasticity of demand is -1. Along line segment AB of the demand curve, the demand is
a. elastic. b. unit elastic. c. inelastic. d. either elastic or inelastic, depending on whether price increases or decreases.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point E to Point B. This could be explained by
A. a change in society's preferences for hybrid cars versus motorcycles. B. an increase in economic growth. C. an increase in unemployment. D. a reduction in unemployment.