Which of the following groups believes that the economy can achieve full employment without inflation through tax reductions, lower resource prices, and deregulation?
a. Classical school.
b. Keynesian school.
c. Neo-Keynesian school.
d. Rational expectations school.
e. Supply-side school.
Question 2
The Phillips curve:
a. was relatively well-defined during the 1960s.
b. demonstrates how to achieve stable economic growth.
c. shows the trade-off between deficits and inflation.
d. helps to stimulate entrepreneurial profits.
e. becomes vertical at full employment.
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