If the economy is experiencing lower levels of unemployment, the short-run Phillips curve suggests that ____ additional employment can be purchased at ____ rates of inflation.
a. greater; relatively low
b. greater; higher
c. lower; lower
d. No such employment-inflation relationship is suggested by the Phillips curve.
Question 2
Which of the following sentences about the benefits of foreign investment is true?
a. Foreign investment is invited only in labor-intensive industries.
b. Foreign investment has more effect on employment in developing countries.
c. Most expenditures on research and development are made by the major developing countries.
d. The ability of foreign firms to utilize modern technology in a developing country depends on having a supply of engineers and technical personnel in the host country.
e. Foreign investment will improve balance of payments if the foreign investment is used to produce goods primarily for domestic consumption.
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