One of the reasons why the Phillips curve is no longer viewed as a "menu" of possible choices available to policy makers is that
a. in the 1970s and 1980s there was no inflation at all.
b. analysis indicates there was no such "menu" in the 1960s.
c. in the 1970s and 1980s much inflation came from the supply side.
d. economic theory is unable to explain the curve and, therefore, it has been rejected.
c
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The belief that the government can do absolutely nothing in either the short run or the long run to reduce the unemployment rate, because people will anticipate the government's actions and respond to it, is held by the
a. rational expectations school b. neo-Keynesian school c. classical school d. supply-side school e. Keynesian school
Answer the next question on the basis of the following data. OutputTotal Cost0$10120228338453573698The average variable cost of producing 3 units of output is
A. $9.33. B. $12.67. C. $10.00. D. $38.00.