What is the modern view of the Phillips curve?
What will be an ideal response?
The modern view is that there is no trade-off between inflation and unemployment except in the short run. People can be surprised and unemployment can go down if the government pursues expansionary monetary or fiscal policy. However, once people learn the true state of affairs, they will adjust their behavior and the natural rate of unemployment will prevail. The price level will be higher though.
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In the neoclassical growth theory
A) small differences in the saving rate or population growth cause large variations in per capita income. B) large differences in the saving rate or population growth rate cause small variations in per capita income. C) large differences in the saving rate or small differences in population growth cause large variations in per capita income. D) small differences in the saving rate or large differences in population growth cause large variations in per capita income.
The greater the number of segments the seller can identify in the market, the more distinct prices it can charge
a. True b. False Indicate whether the statement is true or false