The long-run Phillips curve indicates that
A) potential GDP can never be achieved.
B) there is no way to control the inflation rate in the long run.
C) any inflation rate is possible at the natural unemployment rate.
D) any unemployment rate is possible at the natural inflation rate.
E) there is a tradeoff between the inflation rate and the unemployment rate in the long-run.
C
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A country exports the goods
A) for which its domestic prices are very high compared to the world prices. B) that the economy can produce the most of. C) that the economy can produce at relatively lowest opportunity cost. D) that it cannot sell domestically. E) in which it has a comparative disadvantage.
Why do economists test their hypotheses?
A) to see whether people are motivated by self-interest B) to see whether their models predict the choices people will make C) to determine whether government policies have effectively achieved their goals D) to learn what people are thinking when they make the choices they do