The short-run Phillips curve shows
A) a tradeoff between the unemployment rate and the inflation rate.
B) a tradeoff between real GDP and unemployment.
C) the expected inflation rate.
D) the natural unemployment rate.
E) potential GDP.
A
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Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
Recently, there has been a sharp reduction in the use of antidumping and countervailing duty laws in the United States
Indicate whether the statement is true or false
The rapid movement of money across borders can easily overwhelm a country's financial markets when:
A. a country has a heavily leveraged banking system. B. the required reserves are relatively low. C. the interest rates are relatively high. D. a country is small.
What was the average length of unemployment in April 2012 after the Great Recession but while the economy was still recovering?
a. 14 weeks b. 39 weeks c. 44 weeks d. 52 weeks