Friedman and Phelps argued
a. that in the long run, monetary growth did not influence those factors that determine the economy's unemployment rate.
b. that the Phillips curve could be exploited in the long run by using monetary, but not fiscal policy.
c. that the short-run Phillips curve was very steep, but not vertical.
d. that there was neither a short-run nor long-run tradeoff between inflation and unemployment.
a
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Other things remaining the same, which of the following is likely to happen if there is a decrease in the price of cars?
A) There will be a decrease in both the wage rate and the employment levels in the petroleum extraction industry. B) There will be an increase in the wage rate and a decrease in the employment levels in the petroleum extraction industry. C) There will be a decrease in the wage rate and an increase in the employment levels in the petroleum extraction industry. D) There will be an increase in both the wage rate and the employment levels in the petroleum extraction industry.
When a bank needs to increase its reserves, it will
a. call in all its loans b. stop paying interest on its saving accounts c. borrow money from the government d. call in a loan or reduce new lending e. increase the number of loans it makes
Which employer is discriminating based on personal preferences?
a. Jorge, who tries to interview candidates from a variety of backgrounds b. Ryder, who interviews only whites because her last two white hires were very productive c. François, who does not interview women because he does not want to be around them d. Bessie, who does not interview women because the last two she hired were unproductive
If a perfectly competitive firm charges a price that is equal to its average total cost:
A. the firm is earning an economic profit equal to zero. B. the firm is earning an economic profit greater than zero. C. the firm is earning an economic profit less than zero. D. It is not possible to determine anything about the firm's profits.