A vocal minority of economists, believers in the theory of rational expectations, insist that
A. the Phillips curve is downward sloping even in the short run.
B. the Phillips curve is vertical even in the short run.
C. a trade-off exists between inflation and unemployment even in the long run.
D. expansionary fiscal and monetary policy can reduce unemployment without creating inflation.
Answer: B
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Assume that when the price of good Z is increased from $5 to $6, the total revenue earned increases from $600 to $690. Based on this information, we can conclude that over this range, demand for Z is:
A) elastic. B) unit elastic. C) inelastic. D) perfectly inelastic.
In a randomized controlled experiment
A) there is a control group and a treatment group. B) you control for the effect that random numbers are not truly randomly generated C) you control for random answers D) the control group receives treatment on even days only.