Why does a downward-sloping Phillips curve imply a positive sacrifice ratio?
A downward-sloping Phillips curve implies that as a government acts to decrease inflation, unemployment increases. Increased unemployment leads to lower output. So the Phillips curve implies that inflation reduction requires a short-run decrease in output, as does a positive sacrifice ratio.
Economics
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The value of marginal product of the tenth worker hired by a firm is $50. What is the maximum wage that should be paid to the worker?
A) $5 B) $500 C) $50 D) $0.20
Economics
An increase in tax rates on a product will raise more revenue, the more inelastic is the demand curve
a. True b. False Indicate whether the statement is true or false
Economics