The long-run Phillips curve indicates that the consequences of ...

[natalie2426]

The long-run Phillips curve indicates that the consequences of trying to reduce unemployment below its natural rate would be:
 a. an ever-rising rate of unemployment.
  b. an inflation rate equal to zero.
  c. a very high uncontrollable rate of inflation.
  d. a very low rate of inflation.
  e. a natural rate of unemployment equal to zero.

Question 2

A nonbinding price floor i. causes a surplus. ii. causes a shortage. iii. is set at a price above the equilibrium price. iv. is set at a price below the equilibrium price.
 a. (iii) only
 b. (iv) only
 c. (i) and (iii) only
  d. (ii) and (iv) only

[parshano]

Answer to Question 1

c

Answer to Question 2

b