If an increase in inflation permanently reduced unemployment, then
a. money would not be neutral and the long-run Phillips curve would slope upward.
b. money would not be neutral and the long-run Phillips curve would slope downward.
c. money would be neutral and the long-run Phillips curve would slope upward.
d. money would be neutral and the long-run Phillips curve would slope downward.
b
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John loves to travel. He would never turn down the opportunity to go on a trip. This means that, for John:
a. the total utility of travel always increases. b. marginal utility of travel never decreases. c. the law of diminishing marginal utility does not apply to travel. d. marginal utility of travel is always zero. e. extra travel yields zero consumer surplus.
A rightward shift of the economy's labor supply curve would result from a(n)
a. cut in income tax rates or an increase in welfare benefits to the needy b. cut in income tax rates or a cut in benefits to the needy c. increase in income tax rates or a cut in benefits to the needy d. increase in income tax rates or an increase in benefits to the needy e. cut in income tax rates or a freeze on benefits to the needy