If the short-run Phillips curve was a straight line with a very steep slope, the inflation costs of reducing unemployment:
a. are fairly low

b. are fairly high.
c. depend on the current rate of inflation.
d. rises as the economy approaches full employment.

b

Economics

You might also like to view...

Which of the following is not an example of a government-imposed entry barrier?

A) occupational licensing B) antitrust legislation C) patents D) barriers to international trade

Economics

Consider a firm with the following cost information: ATC = $15, AVC = $12, and MC = $14 . If we know that this firm has decided to produce Q = 20 by following the rule to maximize profits or minimize losses, then the price of the output is

a. $12 b. $14 c. $15 d. $20 e. indeterminate from the information given

Economics