What did Milton Friedman and E.S. Phelps argue with respect to the Phillips Curve?
A) The inverse relationship between unemployment and inflation only holds in the long run. In the short run, unemployment and inflation are positively related.
B) The inflation rate will consistently be 2 percentage points below the unemployment rate.
C) Economic participants would soon understand activist policymakers' strategy and revise their expectations, making discretionary efforts to fine-tune the economy ineffective.
D) The Phillips Curve could accurately guide activist policy makers over the long run.
C
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To carry out an optimization analysis:
A) only direct costs incurred in a project are to be estimated. B) all costs are required to be converted to a same unit of measurement. C) only indirect costs incurred in a project are to be estimated. D) different types of costs are measured in different units.
If the interest rate is 10 percent per year, and you have $100,000 now, which of the following is closest to what your $100,000 will be worth in four years?
A) $175,000 B) $125,000 C) $146,000 D) $190,000