The owners of the resource ________ are paid ________. A) ...

[Medesa]

The owners of the resource ________ are paid ________.
 
  A) land; wages
  B) labor; profit
  C) capital; rent
  D) capital; interest
  E) entrepreneurship; wages

Question 2

How does the expected inflation rate affect the short-run Phillips curve tradeoff between inflation and unemployment?
 
  What will be an ideal response?

[Anonymous]

Answer to Question 1

D

Answer to Question 2

The expected inflation rate affects the short-run Phillips curve. If the expected inflation rate increases, then the short-run Phillips curve shifts upward, which means there is a worse tradeoff between inflation and unemployment. If, however, the expected inflation rate decreases, the short-run Phillips curve shifts downward, thereby improving the tradeoff between inflation and unemployment.