The Keynesian model
a. assumes a stable, downward sloping Phillips curve in the short run.
b. implies a horizontal Phillips curve in the long run.
c. shows that the Phillips curve is can be downward or upward sloping in the short run.
d. differs from Friedman's analysis pertaining to the vertical long-run Phillips curve.
A
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The Grinch is now the mayor of your hometown, and he's still trying to steal Christmas. On the day after Thanksgiving, he announces a $25 tax on fresh Christmas trees. Tree farmers are angry to hear this because they have already delivered this season's
freshly cut trees to the tree lots in your town. You hear your neighbors planning to buy an artificial tree, and your family decides to drive to the next town to buy a tree. a . Who will bear the biggest share of the burden the first Christmas season this tax is in effect? Why? b. Will your answer change for subsequent Christmases? Why?