Author Question: In the 1980s, U.S. economists acknowledged that it was not possible to exploit the trade-off ... (Read 13 times)

justinmsk · **on:** Jun 30, 2018

In the 1980s, U.S. economists acknowledged that it was not possible to exploit the trade-off suggested by the Philips curve of the 1960s. This realization led to more stable macroeconomic policy, which in turn contributed to:
a. more volatility in real output.
b. less volatility in real output.
c. complete removal of unemployment.
d. more volatility in the price level.
e. short business cycles.

Question 2

Price elasticity of demand is defined as:
a. the slope of the demand curve.
b. the slope of the demand curve divided by the price.
c. the percentage change in price divided by the percentage change in quantity demanded.
d. the percentage change in quantity demanded divided by the percentage change in price.