If the government places a new tax on the firing of workers, then we would expect
a. both the short run and long run Phillips curve to shift to the right.
b. both the short run and long run Phillips curve to shift to the left.
c. the long run Phillips curve remains unchanged while the short run Phillips curve shifts to the right.
d. the short run Phillips curve remains unchanged while the long run Phillips curve shifts to the right.
e. none of the above.
B
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Nominal GDP in the United States was higher in 2012 than in 1950, but Real GDP was higher in 1950 than in 2012
Indicate whether the statement is true or false
The invention of the Internet should make poorer countries
A. poorer due to the expense of new technology. B. poorer because the Internet is primarily in richer countries. C. richer because technology adoption is easier. D. richer because they can distribute information without costs.
A fall in the prices of inputs will shift the aggregate:
A. Demand curve leftward B. Demand curve rightward C. Supply curve rightward D. Supply curve leftward
Suppose that a nation has adopted a fixed exchange rate with another country, and has a persistent trade deficit. What is most likely to happen?
a. a gradual increase in the value of its currency b. a gradual decrease in the value of its currency c. a "run" on its currency and a sudden appreciation d. a "run" on its currency and a sudden devaluation