34. The Phillips curve, when it was first discovered by the economist A.W. Phillips, showed the A. positive relationship between inflation and shortrun output B. positive relationship between inflation and unemployment C. negative relationship between inflation and shortrun output D. negative relationship between inflation and unemployment 35. An booming economy producing beyond potential output would be an ex- ample of . costpush ination . demandspull ination 00:1? . costpush and demandpull ination D. none of the above 36. Economists believe that the classical dichotomy A. holds in both the longrun and shortrun. B. holds in the longrun, but not the short-run. C. holds in the shortrun; but not the longrun. D. does not hold in either longrun or shortrun. 37. The principal cause of the Great Depression was A. contractionary monetary policy B. expansionary monetary policy C. contractionary scal policy D. expansionary scal policy 38. Empirical evidence about household consumption nds A. rich households smooth consumption and have a high MPC, while poor house holds do not smooth consumption and have a low MPC B. rich households do not smooth consumption and have a high MPC, while poor households smooth consumption and have a low MPC C. rich households smooth consumption and have a low MPC, while poor house holds do not smooth consumption and have a high MPC D. rich households do not smooth consumption and have a high MPC, while poor households smooth consumption and have a low MPC