Which of the following implies that an increase in the money supply growth rate permanently changes the unemployment rate?
a. both the long-run aggregate supply curve and the long-run Phillips curve
b. the long-run aggregate supply curve, but not the long-run Phillips curve
c. the long-run Phillips curve, but not the long-run aggregate supply curve
d. neither the long-run Phillips curve nor the long-run aggregate supply curve
d
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What is protection as it refers to international trade?
What will be an ideal response?
A positive externality exists when
A. marginal social costs are less than marginal private costs. B. marginal social costs are greater than marginal private costs. C. marginal social benefits are less than marginal private benefits. D. marginal social benefits are greater than marginal private benefits. E. a and d
If a country is running a current account deficit year after year, what should we expect to happen to the exchange rate for that country? Explain.
What will be an ideal response?
If the nominal money supply grows 5%, real income falls 2%, and the income elasticity of money demand is 0.8, then the inflation rate is
A. 7.0%. B. 3.4%. C. 6.6%. D. 3.0%.