Suppose milk and cereal are compliments and the demand for milk is Qdm = 40 - 6Pm - 2Pc, where Qdm stands for millions of gallons of milk demanded, Pm stands for the price of milk and Pc stands for the price of cereal. The supply of milk is Qsm = 6Pm - 8, where Qsm stands for millions of gallons of milk supplied. The demand and supply of cereal are Qdc = 90 - 5Pc - Pm and Qsc = 5Pc - 10, respectively, where Qdc stands for millions of boxes of cereal demanded and Qsc stands for millions of boxes of cereal supplied. Which of the following gives the price of cereal in terms of the price of milk?

Which of the following correctly describes the Phillips curve?

a. A curve showing the inverse relationship between interest rates and the quantity of money demanded. b. A curve showing the direct relationship between interest rates and the quantity of money demanded. c. A curve showing the direct relationship between the inflation rate and the unemployment rate. d. A curve showing the inverse relationship between the inflation rate and the unemployment rate.

The effects of the national health care program on labor markets will

A) lower the effective wage rate that they must pay for each unit of labor. B) decrease the marginal revenue product of labor. C) increase the marginal revenue product of labor. D) move upward along their downward-sloping marginal-product-of-labor curve.