According to new classical theory, if the public correctly anticipates a government policy to increase aggregate demand, then the
A) short-run Phillips curve will be upward sloping, but the long-run Phillips curve will be downward-sloping.
B) long-run Phillips curve will be upward sloping, but the short-run Phillips curve will be downward-sloping.
C) short-run Phillips curve will be upward sloping, but the long-run Phillips curve will be vertical.
D) long run Phillips curve will be upward sloping, but the short-run Phillips curve will be vertical.
E) short- and long-run Phillips curves will be vertical.
E
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A $20 price tag on a sweater in a department store is an example of money serving as a
A) medium of exchange. B) unit of accounting. C) store of value. D) standard of deferred value.
The government of a country decides it long-run exchange rate and intervenes regularly in the foreign exchange market to keep the exchange rate at its fixed level. The country is most likely to have a ________
A) fixed exchange rate system B) dirty-float exchange rate system C) real exchange rate system D) floating exchange rate system
A cost paid in money is
A) not an opportunity cost. B) an implicit cost and an opportunity cost. C) an explicit cost and an opportunity cost. D) not an accounting cost. E) an explicit cost but not an opportunity cost.
One way the government can boost the economy out of a recession is:
A. with public announcements telling the public to save their money. B. by increasing government spending. C. by setting price ceilings on most goods so people can afford them. D. None of these will help an economy in recession.