Policymakers' attempts to use the Phillips curve to reduce the unemployment rate below the natural rate
A) will be successful since the Phillips curve shows the relationship between the inflation rate and the unemployment rate.
B) will be successful if monetary policy is used.
C) will be unsuccessful if monetary policy is used since monetary policy leads to higher prices.
D) will be unsuccessful since workers' expectations adjust to attempts to reduce unemployment below the natural rate.
D
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The circular flow diagram indicates that
A) households sell the services of factors of production to firms. B) firms buy the services of factors of production from the government. C) households sell goods and services to the government. D) firms buy goods and services from households.
Which of the following people is least likely to clip store coupons?
a. a retired person b. an unemployed person c. a low-income worker d. a high-priced consultant e. a graduate student on summer break