A.W. Phillips collected data on the rate of change in money wages and plotted it against unemployment rates in the United Kingdom. The curve he fit to the data showed that
A) the rate of change of money wage rates and unemployment rates were inversely related.
B) the rate of change of money wage rates and unemployment rates were directly related.
C) the rate of change of money wage rates and unemployment rates were independent.
D) as money wage rates increased, the unemployment rate was cut in more than half.
A
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The national debt
A) decreases with a budget deficit. B) increases with increases in government spending. C) increases with open market purchases by the Federal Reserve. D) increases with a budget deficit.
A firm is producing 100 pencils per week. The production process requires labor and capital as inputs. Labor costs $6 per labor hour and capital costs $12 per machine hour. Currently, the marginal product of labor is 18 pencils and the marginal product of capital is 36 pencils. To minimize the cost of producing this level of output the firm should use:
A. More capital and less labor B. More labor and less capital C. Less labor and less capital D. The current amounts of labor and capital