A vocal minority of economists, believers in the theory of rational expectations, insist that
a. the Phillips curve is downward sloping even in the short run.
b. the Phillips curve is vertical even in the short run.
c. a trade-off exists between inflation and unemployment even in the long run.
d. expansionary fiscal and monetary policy can reduce unemployment without creating inflation.
b
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The intersection of supply and demand in the capital market determines the market equilibrium price and quantity in the:
A. rental market. B. purchase market. C. both the rental and purchase markets. D. Any of these statements could be true.
The Lorenz curve represents the distribution of income
a. True b. False Indicate whether the statement is true or false
Economic mobility in the United States is so great that fewer than
a. 3 percent of families are poor for 8 or more years. b. 5 percent of families are poor for 8 or more years. c. 8 percent of families are poor for 8 or more years. d. 10 percent of families are poor for 8 or more years.
If average total cost is decreasing as more and more units are produced, then marginal cost must be
A. constant. B. below average total cost. C. rising. D. negative.