In the long run, unemployment will be at the natural rate. This implies that
A. there is a one-to-one relationship between unemployment and inflation and consequently, the Phillips curve is vertical.
B. there is no relationship between unemployment and inflation and consequently, the Phillips curve is vertical.
C. there is a positive relationship between unemployment and inflation and consequently, the Phillips curve is upward-sloping.
D. there is a negative relationship between unemployment and inflation and consequently, the Phillips curve is downward-sloping.
Ans: B. there is no relationship between unemployment and inflation and consequently, the Phillips curve is vertical.
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Which of the following statements is true of economic reasoning?
A) Economic reasoning hampers optimal decision making. B) Economic reasoning can only be used with normative choices. C) Economic reasoning implies that leisure time is free and costless. D) Economic reasoning helps people make the best use of scarce resources.
The Nash equilibrium was named after
a. Tom Nash b. John Nash c. Robert Nash d. Kelvin Nash