For a given short-run Phillips curve, if expected inflation is 10% but actual inflation is 8%, is the unemployment rate above or below its natural rate?
The unemployment rate is below its natural rate.
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Policies which promote improvements in health for a society are central to:
A. economic development. B. rising health care costs. C. government deficit spending. D. government monetary policy.
An increase in the price level will increase the interest rate, which will decrease investment spending and shift aggregate demand to the left
a. True b. False
The unemployment rate equals the percentage of the labor force that is unemployed
a. True b. False Indicate whether the statement is true or false
If the substitution effect of the real interest rate on saving is smaller than the income effect of the real interest rate on saving, then a rise in the real interest rate leads to a ________ in consumption and a ________ in saving, for someone who's a lender.
A. rise; rise B. rise; fall C. fall; rise D. fall; fall