If the Phillips curve aids in forecasting inflation then
A) forecast errors from an alternative forecasting procedure should not be correlated with output fluctuations.
B) there should be no correlation between forecast errors from an alternative forecasting procedure and output fluctuations.
C) the Phillips curve is upward-sloping.
D) the Phillips curve is downward-sloping.
A
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Allocative efficiency occurs where:
a. the price of a good is less than the marginal cost of producing it. b. the price of a good is greater than the marginal cost of producing it. c. the price of a good is equal to the marginal cost of producing it. d. the greatest quantity of output is available for sale.
Under low-cost contracting like that between beekeepers and farmers, the agreement between the two parties is not self-enforcing because:
a. the terms of contract are laid down by a third party. b. the initial distribution of rights between the two parties is unequal. c. services and payments take place over a span of time, and either might choose to default on his obligations at some point. d. the contract distributes gross revenue between the two parties unequally.