According to the accelerationist Phillips curve, ________
A) expectations adjust continually to the latest information
B) increases in inflation cause the unemployment gap to widen
C) inflation will change so long as an unemployment gap persists
D) all of the above
E) none of the above
C
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Which of the following explains the Phillips curve trade-off?
a. workers' focus on job security as the economy expands rapidly b. firms weaken their resistance to wage pressure during periods of rapid economic growth c. firms' ability to pass along higher wage rates in the form of higher prices during recessions d. an unusual increase in resource supply e. workers' insistence on wage increases during recessions to compensate for unemployment
Tax revenue equals the size of the tax multiplied by the quantity sold in the market after the tax is levied
a. True b. False Indicate whether the statement is true or false