Author Question: According to the rational expectations school of thought in macroeconomics, the short-run Phillips ... (Read 80 times)

soccerdreamer_17 · **on:** Jun 29, 2018

According to the rational expectations school of thought in macroeconomics, the short-run Phillips curve is ________ in face of unanticipated changes in monetary policy.

A) negatively sloped B) vertical C) positively sloped D) horizontal

Question 2

Under which circumstances could the marginal cost and average variable cost curves be one and the same?

What will be an ideal response?

briezy · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

A

Answer to Question 2

This would only be true if the marginal cost curve was constant. That would mean that total variable cost would change by the same amount with each additional unit of output produced.