If wages and prices adjust slowly, we would expect expansionary monetary policy to be
A) more likely to result in a vertical short-run Phillips curve.
B) less likely to reduce the natural unemployment rate.
C) more likely to reduce inflation.
D) more likely to affect the unemployment rate.
D
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If Bolivia can produce 6 calculators or 3 televisions in a day, and Argentina can produce 4 calculators or 12 televisions in a day, then Bolivia would be willing to trade 1 calculator for 1 television with Argentina
a. True b. False Indicate whether the statement is true or false
The price of a depletable natural resource last year rose more than expected. The most likely explanation is that
A. interest rates fell. B. an unexpected discovery of reserves was made. C. the major suppliers formed a cartel. D. price ceilings were established.
If Nepal is a net importer of computers, free trade will hurt the
A. poor citizens of Nepal. B. domestic producers of computers. C. rich citizens of Nepal. D. domestic consumers of computers.
(Last Word) Suppose that a firm has "pricing power" and can segregate its market into two distinct groups based on differences in elasticities of demand. The firm might charge:
A. a lower price to the group that has the less elastic demand. B. a higher price to the group that has the less elastic demand. C. the same price to both groups but include a "free" related product for the group that has an inelastic demand. D. the same price to both groups but make it difficult for the group with the more elastic demand to gain access to the product.