Answer the following statement(s) true (T) or false (F)
1. The Phillips curve demonstrates a positive relationship between inflation and unemployment rates.
2. Lower real wages make it more profitable for companies to hire additional employees.
3. The relationship demonstrated by the Phillips curve tends to disappear in the long run.
4. As aggregate demand in an economy increases, it moves up and to the left on its Phillips curve.
5. The AD/AS model and the Phillips curve show two completely different and unrelated economic events.
1.false
2.true
3.true
4.true
5.false
You might also like to view...
If the number of unemployed workers is 200 million, the number of employed workers is 300 million, and the working-age population is 800 million, what is the labor force participation rate?
A) 12.5% B) 37.5% C) 40% D) 62.5%
Capital controls are most often aimed at slowing or eliminating movements of
A) reserve assets. B) foreign direct investment. C) foreign portfolio investment. D) nonreserve government assets. E) None of the above.