Which of the following is true?

Which of the following is true?
 a. Inflation and unemployment rates can both increase in the short run in response to negative supply shocks.
  b. Inflation and unemployment rates cannot both decrease in the short run in response to reduced aggregate demand.
  c. Inflation and unemployment rates can both decrease in the short run in response to positive supply shocks.
  d. All of the above are true.

Question 2

A country is strongly inward-oriented if exports are clearly discouraged by controls to isolate and protect the domestic market.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 3

The least-cost abatement pattern will require all polluters to clean up on an equal basis.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 4

Which of the following is true?
 a. Inflation and unemployment rates can both increase in the short run in response to positive supply shocks.
  b. Inflation and unemployment rates can both decrease in the short run in response to reduced aggregate demand.
  c. Inflation and unemployment rates can both decrease in the short run in response to positive supply shocks.
  d. The short-run Phillips curve relationship appears to be relatively stable over time.

Question 5

A country is moderately outward-oriented if there are relatively high import-substitution restrictions.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 6

Under the pollution rights approach, polluters have little or no incentive to develop improved pollution abatement technologies.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 7

According to the analysis of the short run and long run Phillips curves in the text, a persistent inflation rate of 10 per year:
 a. Would keep unemployment below the natural rate.
 b. Would keep unemployment above the natural rate.
 c. Would result in unemployment at the natural rate of unemployment.
 d. Is consistent with any of the above scenarios.

Question 8

A country is strongly outward-oriented if there is less or no control on international trade.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 9

Transaction costs are the cost of negotiating and executing an exchange.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 10

Which of the following is true?
 a. Inflation and unemployment rates can both increase in the short run in response to positive supply shocks.
  b. Inflation and unemployment rates can both decrease in the short run in response to reduced aggregate demand.
  c. Inflation and unemployment rates can both decrease in the short run in response to negative supply shocks.
  d. None of the above.