The tradeoff for monetary policy represented by the Phillips curve is
a. lower inflation for lower output.
b. lower inflation for higher unemployment.
c. lower inflation for higher employment.
d. higher expected inflation for higher output.
e. none of the above.
B
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New Keynesians hypothesize that
A) fluctuations in output are largely caused by supply shocks. B) the relationship between inflation and unemployment is exploitable in the long run. C) the relationship between inflation and unemployment is exploitable in the short run. D) there is no relationship between inflation and unemployment.
Which of the following statements is true?
A) Gold is not a scarce resource. B) Both life-saving drugs and ice cream are examples of scarce goods. C) If a scarce resource is given away for free, everyone will be able to consume it. D) Scarcity means that there is an imbalance between unlimited resources and limited wants.
If you think that the economy is entering a recession, and fear that you might lose your job, explain how your actions of lowering your consumption level might actually increase the probability that you do lose your job
The money demand curve will shift to the left if:
A. the nominal interest rate decreases. B. the price level increases. C. ATM machines are introduced. D. the nominal interest rate increases.