A policy intended to reduce unemployment by taking advantage of a tradeoff between inflation and unemployment leads to
a. both higher inflation and higher unemployment in the long run.
b. higher inflation and no change in unemployment in the long run.
c. the same inflation rate and lower unemployment in the long run.
d. higher inflation and lower unemployment in the long run
b
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During the financial crisis it was proposed that firms be provided with a tax credit for investment projects. Such a tax credit would
a. shift both the demand for loanable funds and the supply of dollars in the market for foreign-currency exchange right. b. shift the demand for loanable funds right and shift the supply of dollars in the market for foreign-currency exchange left. c. shift the demand for loanable funds left and shift the supply of dollars in the market for foreign-currency exchange right. d. shift both the demand for loanable funds and the supply of dollars in the market for foreign-currency exchange left.
Inventory depletion is a warning sign of
A. A drop in AS. B. Deflation. C. A drop in AD. D. Inflation.
Most modern economic analysis is normative in nature, but involves questions with positive aspects.
Answer the following statement true (T) or false (F)
If a fast food restaurant gives senior citizens a 10% discount on food every day, this is an example of price discrimination. If they only give the discount on Tuesdays, it is not price discrimination.
Answer the following statement true (T) or false (F)