The Phillips curve tradeoff implies
A. that if the curve is stable, society must accept increases in inflation in exchange for decreases in unemployment.
B. that if the curve is unstable, society must accept increases in inflation in exchange for decreases in unemployment.
C. that if the curve is stable, society must accept increases in inflation in exchange for increases in unemployment.
D. that if the curve is unstable, society must accept falling unemployment when inflation falls.
A. that if the curve is stable, society must accept increases in inflation in exchange for decreases in unemployment.
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Refer to the scenario above. If the size of population is same in both the countries, at the steady-state equilibrium:
A) the GDP per capita of country A will be higher than that of country B. B) the GDP per capita will be the same in both countries. C) the capital stock will be the same in both countries. D) the GDP per capita of country B will be higher than that of country A.
Songwriters and composers press music companies to lower the price for music downloads because
a. demand for on-line music is inelastic b. profits are maximized where price elasticity of demand is -1.0 c. songwriter royalties are a percentage of sales revenue d. profits and total revenue are maximized at different quantities e. profits are maximized at the same prices as sales revenue
The long-run Phillips curve is a horizontal line at the natural rate of unemployment
a. True b. False Indicate whether the statement is true or false
All of the following statements about asymmetric information are true except
A. asymmetric information can only be solved through government intervention. B. asymmetric information creates market failures because it makes it harder for individuals to engage in transactions that would take place in the presence of perfect information. C. asymmetric information occurs when one party to a transaction has relevant information to the transaction that the other party does not have. D. asymmetric information occurs in the market for used cars and in the insurance market.