The lack of a long-run tradeoff between the unemployment rate and the inflation rate means the long-run Phillips curve is
A) horizontal.
B) vertical.
C) upward sloping.
D) downward sloping.
E) U-shaped, with higher inflation initially decreasing unemployment and then increasing it back to the natural unemployment rate.
B
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Which of the following will NOT affect the position of the market supply curve for a good?
A) The government grants a subsidy to the producers for each unit of a good that they produce. B) The price of the good increases. C) The number of sellers in the market increases. D) There is an increase in the prices of the inputs used in production.
The marginal physical product of labor is
A) The additional revenue received by the firm by selling the out of one additional worker. B) The output which labor could produce without other factors of production. C) The amount of extra output that is produced when one extra worker is added and other factors of production are held constant. D) The amount of extra output that is produced when one worker is added and other factors of production are increased proportionally.