In Terms of the Phillips Curve, the Experience of the 1970s

question 145

Multiple Choice

In terms of the Phillips curve, the experience of the 1970s indicates that macro-policy

• A) can permanently reduce unemployment if we are willing to tolerate higher inflation.
• B) can reduce unemployment in the long run if we are willing to tolerate higher inflation.
• C) may be able to reduce unemployment but cannot retard inflation.
• D) may be able to reduce unemployment in the short run, but there is little evidence that expansionary policies can reduce unemployment permanently.

---

Definitions:

Joint Processing Costs

Expenses incurred during the processing of two or more products simultaneously before they are separable.

Cocktail of Organic Nutrients

A mixture or blend of organic substances intended to provide nutritional benefits.

Predetermined Overhead Rate

A rate calculated before a period begins, based on the estimated overhead costs and estimated level of activity, used to allocate overhead to products or services.

Direct Labor-hour

The unit of measure for the time a worker spends on a specific task directly related to the production of goods, reiterated as "The specific hours worked by employees directly contributing to product creation."