The labor supply curve has a
A) positive slope always.
B) negative slope if the income effect is greater than the substitution effect.
C) positive slope if the income effect is greater than the substitution effect.
D) negative slope always.
B
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The major reason tight money fell so heavily on housing in the past was that
A) people didn't like to borrow when interest rates were high. B) the reserve requirements on deposits at saving and loan institutions were higher than those for commercial banks. C) the lag effect of tight money on housing was long and variable. D) there were legal ceilings on the interest rates that saving and loan institutions could pay on their deposits.
Which of the following about the Phillips curve is not correct?
A) It shows the relation between GDP growth and unemployment. B) It has been redefined as a relation between the change in the rate of inflation and the unemployment rate. C) It was first explored by A. W. Phillips. D) The curve is downward sloping.