Critics of the Phillips curve argue that in the long run
A) there is no trade-off between inflation and unemployment because workers' expectations adjust to any systematic attempts to reduce unemployment below the natural rate.
B) employees are not able to anticipate future rates of inflation, and therefore unemployment can always be reduced by inflating the economy.
C) there is a trade-off between unemployment and inflation.
D) for any given unemployment level there is a corresponding inflation rate to which the economy will automatically revert.
A
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Refer to the scenario above. What is the change in total revenue due to the price change?
A) The total revenue increases by $350. B) The total revenue increases by $3,400. C) The total revenue decreases by $1,650. D) The total revenue decreases by $2,275.
A variety of indicators such as goods and labor market integration, differing unemployment rates, and the lack of fiscal federalism have prompted most economists to:
A) herald the success of the Eurozone. B) conclude that the Eurozone has performed better than the United States in nearly every category. C) conclude that the Eurozone has not been (and is not now) an optimal currency area going back to the 1990s. D) recommend changes to the new currency to make it more responsive to demand shocks.
In the three-step method, what is accomplished in step 1?
a. finding the total revenue b. finding the total cost c. finding the market price d. finding the profit-maximizing output level
The economy of Appleland is experiencing a recession. In the figure given below, AD represents aggregate demand and AS represents aggregate supply in Appleland.
If Appleland decides to adopt austerity policies, it will
A. increase spending and cut taxes. B. increase spending and taxes. C. decrease spending and taxes. D. decrease spending and increase taxes.