Comparing the aggregate supply curve and the short-run Phillips curve, we see that they
A) both exist because real wage rate is fixed in the short run.
B) both exist since money wages are flexible.
C) each describe different parts of the economy.
D) describe the same phenomena but contradict each other.
E) both exist because money wage rate is fixed in the short run.
E
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Mountain Water is a natural monopoly. The government decides to regulate Mountain Water by imposing a marginal cost pricing rule. The figure above shows the demand for Mountain Water. Marginal cost is $0.20 per bottle
The price of a bottle of Mountain Water is ________, and ________ thousand bottles are sold per month. A) $0.20; 400 B) $0.50; 250 C) $0.20; 500 D) $1.00; 500
Why don't classical economists or monetarists advocate increasing the money supply in order to raise real GDP?
If a country's per capita GDP is initially $100 and then grows for 3 years at 8 percent per year, its per capita GDP at the end of the three years will be around $10,000
a. True b. False Indicate whether the statement is true or false
High unemployment is undesirable because it
A) results in a loss of output. B) always increases inflation. C) always increases interest rates. D) reduces idle resources.