If the short-run Phillips curve were stable, which of the following would be unusual?
a. an increase in government spending and a fall in unemployment
b. an increase in inflation and a decrease in output
c. a decrease in the inflation rate and a rise in the unemployment rate
d. a decrease in the money supply and a rise in the unemployment rate.
Ans: b. an increase in inflation and a decrease in output
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Describe the four distinct tools of policy that the Federal Reserve can use to influence the money supply. How would the Fed use each of these tools to either increase or decrease the money supply?
What will be an ideal response?
An oligopoly firm with a differentiated product will generally earn the largest profits without advertising
a. True b. False Indicate whether the statement is true or false
Refer to the accompanying table below. The marginal cost of the 3rd unit of this activity is: Units of ActivityTotal CostTotal Benefit0$0$01$30$1002$40$1603$60$1904$100$2105$150$2206$210$225
A. $30 B. $25 C. $10 D. $20
According to the text, the procedure of "anchoring and adjustment:"
A. describes people who are dogmatic in their views but change when new data comes. B. often leads to biased estimates. C. usually leads to correct estimates without rational calculations. D. explains why people tend to succeed at new business ventures.