Several people in Neonland are expecting a sharp rise in the unemployment rate in the near future. Which of the following is likely to happen in this case?
A) The labor demand curves of firms in Neonland will shift rightward.
B) Neonland's GDP will fall.
C) Current consumption by households will increase.
D) Investment by firms will increase.
B
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The CPI and the GDP deflator
a. generally move together. b. generally show different patterns of movement. c. always show identical changes. d. always show different patterns of movement.
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Answer the following statement(s) true (T) or false (F)
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A) conduct monetary policy independently of all other countries. B) conduct monetary policy only in coordination with all other countries. C) conduct monetary policy only in cooperation with its reserve currency country (the country to which it fixes its currency). D) print money without affecting inflation.