Answer the following statements true (T) or false (F)
1. A rightward shift of the Phillips Curve suggests that a lower rate of unemployment is associated with each inflation rate.
2. In the context of the Phillips curve, stagflation can only be understood as a rightward shift of the curve.
3. A stable Phillips curve does not allow for the possibility of stagflation.
4. The implication of the long-run Phillips Curve is that there is no trade-off between inflation and unemployment in the long-run.
5. The long-run Phillips Curve is essentially a horizontal line at the economy's natural rate of inflation.
1. F
2. T
3. T
4. T
5. F
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Refer to Table 14-5. Does Henri have a dominant strategy? If yes, what is it?
A) Yes, Henri's dominant strategy is to not offer free pickup and delivery. B) Yes, Henri's dominant strategy is to offer free pickup and delivery. C) Yes, Henri's dominant strategy is to wait and see what Ming does first. D) No, Henri does not have a dominant strategy - his best outcome depends on what Ming does.
Suppose a plaintiff hires a lawyer to represent her in a court case. The lawyer will receive a share of the settlement if the plaintiff wins. Under this contract
A) efficiency cannot be achieved. B) the client bears all of the risk. C) the lawyer bears all of the risk. D) the risk is shared.