Answer the following statements true (T) or false (F)
1) A shift in the Phillips Curve to the left will improve the short-run inflation-unemployment
choices available to society.
2) A rightward and upward shift of the Phillips Curve is consistent with the occurrence of
stagflation.
3) There is no trade-off between unemployment and inflation in the long run.
4) There is no trade-off between unemployment and inflation in the long run.
5) The Laffer Curve underlies the contention that lower tax rates need not reduce tax revenues.
1) T
2) T
3) T
4) F
5) T
You might also like to view...
At an equilibrium price, quantity demanded
a. exceeds quantity supplied. b. equals quantity supplied. c. is less than quantity supplied. d. Any of the above is possible.
If real income rises in the economy and, at the same time, productivity in the agriculture sector rises, too, then it follows that the demand for food will
A) rise (assuming that income elasticity of demand for food is greater than 1 ) and the supply of food will remain constant. B) rise (assuming that income elasticity of demand for food is greater than 0 ) and the supply of food will increase, too. C) fall (assuming that income elasticity of demand for food is greater than 1 ) and the supply of food will fall, too. D) fall (assuming that income elasticity of demand for food is equal to 1 ) and the supply of food will rise. E) none of the above