If policy makers do nothing in a recessionary gap, the most likely outcome is a
a. drop in the inflation rate and a rise in the unemployment rate.
b. drop in the inflation rate and a drop in the unemployment rate.
c. rise in the inflation rate and a drop in the unemployment rate.
d. rise in the inflation rate and a rise in the unemployment rate.
b
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Blu-ray disc players, iPhones, and hybrid cars are generally considered to be ________ goods
A) service B) nondurable C) durable D) intermediate
Assuming all else equal, if a bank expects a bank run in the future:
A) there will be an upward movement along its demand curve for reserves. B) its demand curve for reserves will shift to the left. C) there will be a downward movement along its demand curve for reserves. D) its demand curve for reserves will shift to the right.
If the quantity of gasoline supplied currently exceeds the quantity demanded,
A) there is a surplus of gasoline. B) gasoline is no longer a scarce good. C) the price of gasoline would tend to remain unchanged. D) all of the above are true. E) none of the above is true.
In the long run, the Phillips curve is a ________ at ________
A) horizontal line; 0% inflation B) vertical line; the natural rate of unemployment C) vertical line; the expected rate of inflation D) negatively sloped line; the intersection of aggregate demand and short-run aggregate supply