The problem portrayed by the short-run Phillips curve is that:
A. inflation tends to increase when unemployment falls.
B. changes in the composition of the labor force tend to increase the natural rate of unemployment.
C. stagflation is unavoidable.
D. unemployment tends to increase when prices are rising.
Answer: A
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If the last $5 spent on movies added 30 utils to your total satisfaction and the last $8 spent on books add 56 utils
A) you can increase your satisfaction by buying more books and seeing fewer movies. B) your total satisfaction is 86 utils. C) you can increase your satisfaction by buying fewer books and seeing more movies. D) you can increase your satisfaction by buying only books.
Use the following table of U.S. balance of payments accounts to answer the next question.Current AccountFinancial AccountCapital AccountCreditDebitCreditDebitCreditDebit$45 billion$60 billion$72 billion$52 billion$7 billion$12 billionSuppose the U.S. exports $10 billion of coal to France. Which of the following statements is true?
A. The increase in the financial account credit of $10 billion will reduce the capital account credit by $2 billion and the current account credit by $8 billion. B. The increase in the capital account debit of $10 billion will increase the financial account debit by $10 billion as well. C. The increase in the current account debit of $10 billion will be offset by an increase in the capital account of $10 billion. D. The increase in the current account credit causes an increase in the financial and capital account surpluses of $5 billion each.