Along an actual (observed) Phillips curve,
A. aggregate output varies inversely with the unemployment rate.
B. aggregate output directly inversely with the inflation rate.
C. the inflation rate varies inversely with the unemployment rate.
D. the inflation rate varies directly with the unemployment rate.
Ans: C. the inflation rate varies inversely with the unemployment rate.
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Which theory emphasizes the significance of new discoveries that can be used by many people at the same time?
A) neoclassical growth theory B) new growth theory C) classical growth theory D) None of the above answers are correct.
A subsidy to carrot farmers will
A) increase the quantity of carrots demanded. B) decrease the quantity of carrots supplied. C) increase the supply of carrots. D) leave both the supply and demand of carrots unchanged.