Country A has a higher money supply growth rate and a long-run Phillips curve that is farther to the left than country B's. In the long run as compared to country B, country A will have
a. lower unemployment and higher inflation
b. higher unemployment and higher inflation
c. lower unemployment and lower inflation
d. None of the above is necessarily correct.
a
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Shortly after the 2012 election, the AMT was reformed to
A. reduce the tax liabilities of the taxpayers with the lowest taxable incomes. B. index its thresholds for inflation. C. reduce the tax liabilities of the taxpayers with the highest taxable incomes. D. remove inflation.
If a tax cut increases people's labor supply, then the tax cut
A) increases potential GDP. B) decreases aggregate demand. C) decreases potential GDP because the real wage rate falls. D) does not affect aggregate demand. E) Both answers B and C are correct.
A higher ________ means that an asset's return is more sensitive to changes in the value of the market portfolio
A) alpha B) beta C) CAPM D) APT
The quantities of Good M are plotted on the vertical axis while the quantities of Good N are plotted on the horizontal axis. The prices of both M and N fall. The intercepts of the budget line would
A) decline along both axes. B) rise on the vertical axis and also rise on the horizontal axis. C) rise on the horizontal axis but stay unchanged on the vertical axis. D) rise on the vertical axis but stay unchanged along the horizontal axis.