MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The negative relationship between unemployment and inflation is known as the A) aggregate supply curve. B) aggregate demand curve. C) efficiency wage line. D) Phillips curve. 2) Friedman and Phelps suggested that there should not be a stable relationship [...]
Every economic system must answer these five questions effectively or the system itself is ineffective. 1. What goods does the economy produce? For capitalism the answer is simply “Whatever the people are willing to buy.” Since capitalism is driven solely by self interest anything that can be produced at a profit will be produced. In [...]