According to monetarists, the natural rate theory
a. denies the tradeoff between inflation and output.
b. argues that there is a stable tradeoff between inflation and output.
c. shows that activist policies work best.
d. believes that the Phillips curve relationship breaks down when policymakers attempt to use it.
D
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The table above gives the labor market for a small foreign economy. A(n) ________ would create ________
A) minimum wage of $9.00; a decrease in job search. B) minimum wage of $5.00; an increase in job rationing. C) efficiency wage of $9.00; an increase in job rationing. D) efficiency wage of $8.00; unemployment and job rationing. E) union-negotiated wage of $7.50; unemployment and job rationing.
Describe the decision for a perfectly competitive employer in determining the profit maximizing quantity of labor to employ.
What will be an ideal response?