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1 – Say’s law from a classical economic perspective __________.
states that supply creates its own demand
explains the classical idea that the value of GDP will equal the demand for goods and services
supports economists belief that neither surplus nor shortage would ever exist when production and demand are equal for goods and services
all of the above
2 – Since the long-run Phillips curve is vertical at the natural unemployment rate, what type of trade-off is there between employment and inflation?
Question 27 options:
There is no trade-off between employment and inflation.
There is a constant trade-off between employment and inflation.
There is a linear trade-off between employment and inflation.
Employment and inflation are indirectly proportional (the one goes up, the other goes down..
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