Today, the earth has ________ of all of the species that have ever lived

Answer the following statements true (T) or false (F)

1. The policy implication of the long-run Phillips Curve is that, while stimulative policies may work to reduce unemployment in the short run, the only effect of such policies in the long run is to raise inflation. 2. Based on the long-run Phillips Curve, any rate of inflation is compatible in the long run with the natural rate of unemployment. 3. The adjustment mechanism that brings the economy to its long-run aggregate supply has to do with inflation-expectations, whereas the adjustment to the long-run Phillips curve has to do with wage flexibility. 4. Supply-side economists contend that aggregate supply is the relevant policy factor in influencing the price level and real output in an economy. 5. Supply-side economists recommend higher marginal tax rates to increase aggregate supply and real output.

Refer to the labor market in Figure 33.5. Suppose that the government imposes a payroll tax on employers in this market. How much will the government collect in tax receipts for every worker hired?

A. $10 - $8 = $2 per hour. B. $10 - $7 = $3 per hour. C. $7 per hour. D. $8 - $7 = $1 per hour.