Since the end of World War II, the U.S. has almost always had rising prices and an upward trend in real GDP. To explain this
a. it is only necessary that long-run aggregate supply shifts right over time.
b. it is only necessary that aggregate demand shifts right over time.
c. both aggregate demand and long-run aggregate supply must be shifting right and aggregate demand must be shifting farther.
d. None of the above cases would produce rising prices and growing real GDP over time.
c
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________ consumption is consumption that does not depend upon the level of GDP.
A) Autonomous B) Induced C) Voluntary D) Disposable
Because workers tend to work more when their after-tax wage increases, the government can increase tax revenue by cutting taxes. ?
Answer the following statement true (T) or false (F)
Over the last 50 years, the employment ratio has fallen most significantly among ________
A) men B) women C) blacks D) Hispanics
Which of the following models emphasizes the importance of credible, predictable government policies for maintaining full employment with low inflation?
a. The monetarist model. b. The Keynesian model. c. The supply-side model. d. The rational expectations model.