Author Question: According to the theory of rational expectations, when it comes to expected changes in the inflation ... (Read 24 times)

dollx · **on:** Jun 30, 2018

According to the theory of rational expectations, when it comes to expected changes in the inflation rate, the short-run Phillips curve would be:
a. vertical.
b. horizontal.
c. upward sloping.
d. downward sloping.

Question 2

Which of the following is an argument for globalization?
a. Poor countries compete for multinational firms by allowing lax environmental standards.
b. Multinational firms tend to pay lower wages than local firms.
c. The benefits of globalization to all consumers greatly outweigh the loss of jobs to international competition.
d. Removal of restrictions against agricultural products would cause workers in rich countries to lose their jobs.
e. The increased integration of the world's economies has been associated with lax environmental and labor standards in most countries.