Suppose that the money supply increases. In the short run this decreases unemployment according to
a. both the short-run Phillips curve and the aggregate demand and aggregate supply model.
b. neither the short-run Phillips curve nor the aggregate demand and aggregate supply model.
c. the short-run Phillips curve, but not according to the aggregate demand and supply model.
d. the aggregate demand and aggregate supply model, but not according to the short-run Phillips curve.
a
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If prices are sticky
A) prices will quickly adjust to changes in demand. B) economic activity will not be coordinated efficiently. C) quantity supplied will always equal quantity demand. D) economic activity will be coordinated efficiently.
If Japan is relatively capital rich and the United States is relatively land rich, and if food is relatively land intensive then trade between these two, formerly autarkic countries will result in
A) an increase in the relative price of food in the U.S. B) an increase in the relative price of food in Japan. C) a global increase in the relative price of food. D) a decrease in the relative price of food in both countries. E) an increase in the relative price of food in both countries.
A market is considered efficient if profit opportunities remain continually available.
Answer the following statement true (T) or false (F)
Which of the following statements concerning higher marginal tax rates is correct?
A. They discourage work effort and make fewer people eligible for welfare benefits. B. They discourage work effort and make more people eligible for welfare benefits. C. They encourage work effort and make more people eligible for welfare benefits. D. They encourage work effort and make fewer people eligible for welfare benefits.