The fact that the long-run Phillips curve is vertical implies that
A) monetary policy can't affect unemployment.
B) money is neutral in the long run.
C) there is a natural rate of inflation.
D) money can't affect inflation in the long run.
B
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Microeconomics studies
A) decisions made by individual consumers and firms. B) the changes in economic theory brought about by real-world events. C) how small changes in the unemployment rate can have far-reaching effects. D) how small changes in the money supply can have far-reaching effects.
When does a resource earn only economic rent?
a. When the supply curve of the resource is relatively elastic b. When the supply curve of the resource is horizontal c. When the supply curve of the resource is vertical d. When the supply curve of the resource is relatively inelastic e. When the supply curve of the resource is backward bending