Economists who have studied the Phillips curve have concluded that it can shift due to all of the following EXCEPT
A) demand shocks.
B) supply shocks.
C) changes in household expectations of inflation.
D) changes in firms' expectations of inflation.
A
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When the federal government uses taxation and purchasing actions to stimulate the economy it is conducting
A. monetary policy. B. fiscal policy. C. employment policy. D. incomes policy.
A firm’s budget line shows a given expenditure on production, given the input prices for the production process.
Answer the following statement true (T) or false (F)
In the Keynesian cross diagram, a decrease in investment spending because companies become more pessimistic about investment profitability causes the aggregate demand function to shift ________ and the equilibrium level of aggregate output to
________, everything else held constant. A) up; rise B) up; fall C) down; rise D) down; fall
If capital per-worker is rising, then ________
A) depreciation is equal to investment B) depreciation is greater than investment C) depreciation is less than investment D) depreciation is less than consumption