Consider two countries: Eastland and Westland. Eastland's long-run Phillips curve sits further to the right than does Westland's long-run Phillips curve. Eastland and Westland are identical in all other ways. In particular, they have the same money supply growth rates. In the long run, compared to Westland, which of the following will we observe in Eastland?
a. higher unemployment and higher inflation.
b. higher unemployment and the same rate of inflation.
c. lower unemployment and higher inflation.
d. None of the above is correct.
b
Economics
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The concept of marginal productivity is applicable to
a. all of the following b. capital c. entrepreneurial talent d. land e. labor
Economics
If the average variable cost of a firm is falling, then the:
a. average fixed cost must be rising. b. marginal cost must be falling. c. marginal cost must be rising. d. marginal cost lies below the average variable cost. e. marginal cost lies above the average variable cost.
Economics