One way of expressing the concept of the short-run Phillips curve is to say that:
a. the cost of reducing unemployment is higher inflation
b. nothing but good comes from reducing unemployment.
c. the cost of reducing inflation is lower unemployment.
d. aggregate supply and aggregate demand will always be equal at the potential output level.
e. the best economic policy is one that attempts to make the rate of inflation equal to the rate of unemployment.
a
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The focus of the Ricardian model is on how differences in _________ influence international trade patterns.
a. demand b. comparative costs c. absolute costs d. transportation costs
In the classical model, and increase in tax on firms that hired labor would
a. decrease labor demand and the real wage and increase output. b. decrease labor supply, increase the real wage, and decrease output. c. decrease labor demand, decrease the real wage, and decrease output. d. reduce real wages and increase output.