If an economy's resources are fully employed,
a. a great deal of unemployment will be needed to achieve even a small reduction in inflation.
b. the aggregate supply curve (and thus the Phillips curve) will be flat.
c. the aggregate supply curve (and thus the Phillips curve) will be steep.
d. Both a and c are correct.
c
Economics
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If the MPC is .70 and investment increases by $3 billion, the equilibrium GDP will:
A. increase by $10 billion. B. increase by $2.10 billion. C. decrease by $4.29 billion. D. increase by $4.29 billion.
Economics
Which of the following would be considered a positive incentive for a farm business?
a. soil remediation costs b. fertilizer licensing fees c. agricultural subsidies d. real estate taxes
Economics