Milton Friedman and Edmund Phelps questioned

A) the use of expectations in the Phillips curve.
B) the stability of the relationship between inflation and unemployment.
C) the existence of a natural rate of unemployment.
D) the existence of a full-employment level of output.

B

Economics

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Fred buys a fresh-off-the-assembly-line car from Wee-Rob-U Auto Sales. He paid $27,500, even though Wee-Rob-U acquired it for $23,000. What happens to this year's GDP?

A) Nothing. B) It increases by $4,500. C) It increases by $23,000. D) It increases by $27,500. E) It decreases by $4,500, because the dealer robbed Fred.

Economics

Which of the following is the fundamental resource that is the basis of labor?

a. capital b. natural resources c. time d. money e. entrepreneurial ability

Economics