Friedman and Phelps Concluded That

question 119

Multiple Choice

Friedman and Phelps concluded that

• A)in the long run the Phillips curve is downward sloping,which is consistent with classical theory.
• B)in the long run the Philips curve is downward sloping,which is inconsistent with classical theory.
• C)in the long run the Phillips curve is vertical,which is consistent with classical theory.
• D)in the long run the Phillips curve is vertical,which is inconsistent with classical theory.

Comprehend the significance of experimentation and feedback in the entrepreneurial process.

Understand the spectrum of failure from blameworthy to praiseworthy and the role of ethical boundaries in failure.

Recognize the impact of mindset (growth vs. fixed) on perception and reaction to failure.

Appreciate grit as a quality in entrepreneurship and its components.

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Definitions:

Laspeyres Price Index

An economic measure that calculates the change in the cost of acquiring a fixed basket of goods and services, based on the prices of those goods and services in a base period.

Laspeyres Price Index

An economic index that calculates the change in the price level of a basket of goods and services based on the prices and quantities consumed in a base period.

Consumptions

The process of using goods and services to satisfy wants or needs, often measured as an important component of economic activity.

Base Year

A base year is a specific year against which economic growth is measured, often used as a reference point for the calculation of index numbers.