When the expected inflation rate ________, the short-run Phillips curve ________
A) rises; shifts downward
B) falls; shifts upward
C) rises; shifts upward
D) falls; does not shift
E) rises; might shift upward or downward depending on how the long-run Phillips curve shifts
C
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If Project X has a cost of $6 and provides a benefit of $10, and Project Y has a cost of $25 and provides a benefit of $27, which of the following statements is true?
A) An individual can optimize by choosing Project X. B) An individual can optimize by choosing Project Y. C) Switching from Project X to Project Y increases net benefit by $2. D) Switching from Project Y to Project X decreases net benefit by $2.
Private income and wealth completely determine how many goods and services one consumes
Indicate whether the statement is true or false
If the social cost is greater than the private cost in a particular market, the socially optimal equilibrium will be at a quantity:
A. greater than the private level. B. equal to the private level. C. greater than or less than the private level, depending on the size of the external costs. D. less than the private level.
The slow growth coming out of the Great Recession caused the Fed to
A. focus exclusively on the traditional tools of monetary policy. B. employ discretionary fiscal policy. C. employ nondiscretionary fiscal policy. D. employ new tools of monetary policy.