Under adaptive expectations theory, an increase in the short-run aggregate demand curve ____ the inflation rate and ____ the unemployment rate
a. increases; increases
b. increases; decreases
c. increases; does not change
d. decreases; increases
b
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Non-activists
A) distrust the ability of the political process to formulate sensible economic policy. B) argue for a constant-growth-rate rule for the money supply. C) argue that more unemployment now may prevent a lot more unemployment in the future. D) All of the above.
If a pair-wise majority vote was held to determine which school project gets funded and the voters' preferences are in the given table, who will be happiest if the lab and library are voted on first?
A. Ernie
B. Fiona
C. David
D. All people would be equally happy.
Land used to grow corn could also be used to grow soybeans. Which of the following is true when the farmer plants soybeans and the market price of corn rises?
a. The opportunity cost of producing soybeans decreases. b. The opportunity cost of producing soybeans increases. c. There will be no change in the opportunity cost of producing soybeans. d. The opportunity cost of producing corn increases.
Most economists use the aggregate demand and aggregate supply model primarily to analyze
A. short-run fluctuations in the economy. B. the effects of macroeconomic policy on the prices of individual goods. C. productivity and economic growth. D. None of the above is correct.