During the 1960s, many Keynesian economists felt that by studying the Phillips curve
A) policy makers could fine-tune the economy by selecting policies that would produce the exact mix of unemployment and inflation that suited current government objectives.
B) policy makers could eliminate even frictional unemployment in the economy.
C) the President and Congress did not need to attempt to balance the budget.
D) policy makers could dispense with the Federal Reserve's open-market operations.
A
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If supply increases and demand decreases, the new equilibrium price will be ________ and the new equilibrium quantity will be ________.
A. lower; uncertain B. higher; higher C. lower; lower D. higher; uncertain
Which of the following is NOT a component of value added of a firm?
A) profits B) wages C) interest D) expenditures on intermediate goods
A favorable supply shock will cause
a. unemployment to rise and the short-run Phillips curve to shift right. b. unemployment to rise and the short-run Phillips curve to shift left. c. unemployment to fall and the short-run Phillips curve to shift right. d. unemployment to fall and the short-run Phillips curve to shift left.
An increase in a country's capital stock relative to its work force is known as:
A. capital deepening. B. capital growth. C. capital improvement. D. capital augmentation.