A reduction in government taxes causes:
a. The monetary base to either rise or fall, depending on the state of the economy.
b. No change in the monetary base.
c. The monetary base to fall.
d. The monetary base to rise.
.B
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Along the long-run Phillips curve, the unemployment rate ________, and the inflation rate ________
A) can be any value; is equal to the natural inflation rate B) is equal to the natural unemployment rate; is equal to the natural inflation rate C) is equal to the natural unemployment rate; can be any value D) can be any value; can be any value E) None of the above answers is correct.
The "law of diminishing marginal returns" applies to:
A) the short run, but not the long run. B) the long run, but not the short run. C) both the short run and the long run. D) neither the short run nor the long run.
Loanable funds are the physical equivalent to capital equipment
Indicate whether the statement is true or false
In the short-run, higher prices can be caused by:
a. A decrease in aggregate supply, an increase in aggregate demand, or both. b. A decrease in aggregate supply, decrease in aggregate demand, or both. c. An increase in aggregate supply, increase in aggregate demand, or both. d. An increase in aggregate supply, a decrease in aggregate demand, or both. e. Central bank actions only.