The assumption that wages adjust more slowly than prices implies that the Phillips Curve
A) exists in the short-run.
B) exists in the long-run.
C) is vertical.
D) does not exist.
A
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Redistribution through the public sector tends to lower economic prosperity because
a. it weakens the link between productive activity and the reward derived from it. b. it encourages resources to flow into wasteful rent-seeking activities. c. the higher tax rates required to finance redistribution result in resources being devoted toward tax avoidance activities. d. all of the above are true.
The quantity supplied of hot dogs is 200 at the unit price of $3.50. Suppose the price elasticity of supply by the initial value method is 2, and you would like to induce sellers to increase the quantity of hot dogs supplied to 220. Then new price must be:
A. $1.5. B. $2. C. $2.5. D. $3.