If inflationary expectations are stable and there is no current inflation, the short-run Phillips curve will intersect the long-run Phillips curve at:
a. a 0 percent unemployment rate

The figure above represents the production possibilities frontier for a country

a) The nation is currently producing at point B and wants to move to point C. What is the opportunity cost of the move? b) The nation is currently producing at point B and wants to move to point A. What is the opportunity cost of the move?

Which of the following arguments is typically associated with classical economists?

A) A market economy is self-correcting and thus will not remain in a recession indefinitely B) A market economy has stable prices and thus is usually free from inflation C) A market economy requires a strong government to ensure that the market meets the needs of the people D) A market economy needs only moderate assistance from the government to avoid an extended recession E) A market economy eventually results in monopolies in both the input and output markets