A policy that raised the natural rate of unemployment would shift
a. both the short-run and the long-run Phillips curves to the right.
b. the short-run Phillips curve right but leave the long-run Phillips curve unchanged.
c. the long-run Phillips curve right but leave the short-run Phillips curve unchanged.
d. neither the long-run Phillips curve nor the short-run Phillips curve right.
a
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As firms raise output in response to rising aggregate demand,
a) resources become scarce, wages eventually rise, and a point is reached beyond which output cannot expand b) they become increasingly efficient and are thus able to pass the cost savings on to consumers in the form of lower prices c) real wages fall, interest rates rise, and consumers buy less d) they hire fewer workers and substitute capital for labor e) the level of nominal GDP falls, though real GDP rises
Stagflation involves simultaneous high levels of
A. unemployment and interest rates. B. interest rates and inflation. C. unemployment and inflation. D. economic growth and inflation.
Suppose Ariana deposits $75,000 in her bank. If the reserve ratio is 20 percent, this will lead to a maximum increase of ________ in checking account balances throughout all banks.
A. $15,000 B. $375,000 C. $750,000 D. $1,500,000
What are the externalities associated with education?
What will be an ideal response?