Author Question: Critics of the Phillips curve argue that in the long run A) there is no trade-off between ... (Read 71 times)

jace · **on:** Jun 30, 2018

Critics of the Phillips curve argue that in the long run

A) there is no trade-off between inflation and unemployment because workers' expectations adjust to any systematic attempts to reduce unemployment below the natural rate.
B) employees are not able to anticipate future rates of inflation, and therefore unemployment can always be reduced by inflating the economy.
C) there is a trade-off between unemployment and inflation.
D) for any given unemployment level there is a corresponding inflation rate to which the economy will automatically revert.

Question 2

Country X exports 10 million tonnes of wheat to Country Y. Which of the following will happen in this case?

A) Country X's GNP will decrease. B) Country Y's GNP will increase.
C) Country Y's GDP will increase. D) Country X's GDP will increase.