The government of Blenova considers two policies. Policy A would shift AD right by 500 units while policy B would shift AD right by 300 units. According to the short-run Phillips curve, policy A will lead
a. to a lower unemployment rate and a lower inflation rate than policy B.
b. to a lower unemployment rate and a higher inflation rate than policy B.
c. to a higher unemployment rate and lower inflation rate than policy B.
d. to a higher unemployment rate and higher inflation rate than policy B.
b
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
Refer to Figure 15-3. Suppose the monopolist represented in the diagram above produces positive output. What is the profit-maximizing/loss-minimizing output level?
A) 630 units B) 800 units C) 850 units D) 880 units
In the monetarist view, the money supply affects the economy
a. through investment spending and government spending. b. indirectly through interest rates. c. directly, apart from interest rates. d. by altering the size of the money multiplier.
Differentiated goods are a feature of a:
A. perfectly competitive market. B. monopolistic market. C. monopolistically competitive market. D. monopolistically competitive market and monopolistic market.