The short-run Phillips curve suggests what policy making implications?
A) Using discretionary policies, it may be possible to achieve just the right unemployment and inflation mix.
B) Active policy making does not yield any predictable results.
C) Maintaining both the inflation and unemployment rates at low levels is possible if policy makers will rely solely on nondiscretionary policy making.
D) Passive policy making is more effective than active policy making.
A
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Which of the following is true of international reserve currencies?
a. They are used for international exchange of goods and services. b. They are used to settle international debt. c. They are used for international bookkeeping. d. They are held for government investment abroad. e. They are created for international stock market trading.
While on a study abroad program you see a McDonald's in Paris. A combo meal costs 8 euros. The same meal costs $6 in the U.S. and the exchange rate is .75 euros per dollar. A. Find the real exchange rate. Show your work. B. In terms of dollars where is the combo meal cheaper?
Normative economics is more important than positive economics.
A. True B. False C. Uncertain
The aggregate demand-aggregate supply model shows that closing an expansionary gap involves deflation and closing a recessionary gap involves inflation.
a. true b. false