For a number of years Canada and many European countries have had higher average unemployment rates than the United States. The Phillips curve suggests that these countries a. have higher average inflation rates than the United States. b. have long-run Phillips curves to the right of the United States’. c. may have less generous unemployment compensation or lower minimum wages. d. All of the above are consistent with the evidence on unemployment rates.
For a number of years Canada and many European countries have had higher average unemployment rates than the United States. The Phillips curve suggests that these countries a. have higher average inflation rates than the United States. b. have long-run Phillips curves to the right of the United States’. c. may have less generous unemployment compensation or lower minimum wages. d. All of the above are consistent with the evidence on unemployment rates.
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter17: The Short-run Trade-off Between Inflation And Unemployment
Section17.1: The Phillips Curve
Problem 1QQ
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For a number of years Canada and many European countries have had higher average unemployment rates than the United States. The Phillips curve suggests that these countries
a. |
have higher average inflation rates than the United States.
|
|
b. |
have long-run Phillips curves to the right of the United States’.
|
|
c. |
may have less generous unemployment compensation or lower minimum wages.
|
|
d. |
All of the above are consistent with the evidence on unemployment rates.
|
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