The idea that the long-run Phillips curve is
a. vertical stems from the analysis of Samuelson and Solow.
b. vertical stems from the analysis of Friedman and Phelps.
c. vertical was disproved by the experiment that monetary and fiscal policymakers inadvertently created in the 1970s.
d. downward-sloping can be correct if unemployment responds very quickly to unexpected inflation.
b
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Governments may exercise moral judgment in levying taxes. Items that are typically excluded include the following, except
a. milk b. bread c. cigarettes d. medicine e. books
A difference between a quota and a tariff is that
A) a tariff generates a higher price than a quota does. B) a tariff generates a greater reduction in exports. C) a quota increases profits of domestic producers more than a tariff does. D) the government collects revenues from a tariff, which does not happen with a quota.