In the late 1960s, economist Edmund Phelps published a paper that
a. argued that there was no long-run tradeoff between inflation and unemployment.
b. disproved Friedman's claim that monetary policy was effective in controlling inflation.
c. showed the optimal point on the Phillips curve was at an unemployment rate of 5 percent and an inflation rate of 2 percent.
d. argued that the Phillips curve was stable and that it would not shift.
a
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In the efficiency wage model, an increase in productivity would
A) increase output but decrease the real wage. B) decrease the real wage but have no effect on output. C) increase output but have no effect on the real wage. D) have no effect on either output or the real wage.
An increasing cost industry is one in which per unit cost increases as output expands in the long run
a. True b. False