The Following Phillips Curve of Would Be Consistent with the _____

question 44

Multiple Choice

The following Phillips curve of would be consistent with the _____ model(s) . $$\dot { P } = \dot { P } ^ { e } - .2.5 ( u - .04 )$$

• A)Keynesian.
• B)monetarist.
• C)monetarist and classical.
• D)classical.
• E)None of the above

---

Definitions:

Efficient Price

Price level at which the quantity demanded and supplied in a market are at equilibrium, leading to an optimal distribution of resources.

Common Resources

Resources like air or water that are not owned by anyone, cannot be consumed by one user without reducing available supply for others, and are available to all.

Private Market

A market in which transactions occur directly between private sector buyers and sellers without significant government regulation or intervention.

Marginal Social Benefit

The additional benefit to society as a whole from producing or consuming one more unit of a good.