If the Fed raised the money supply growth by more than expected then the unemployment rate would _____ in the short run. Explain the process by which the economy moves to the long run if the Fed maintains the higher money supply growth rate
Fill in the blank(s) with correct word
fall. Eventually inflation expectations increase so the short-run Phillips curve shifts to the right until the economy returns to the natural rate of unemployment.
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A shift to a more expansionary monetary policy will generally _________ in the short run, but if the rapid monetary expansion persists, the long-run result will be ______.(fill in the blanks.)
a. expand output and employment; inflation b. increase the general level of prices; expand output and employment c. increase the rate of unemployment; reduce the rate of inflation d. reduce the rate of inflation; increase the rate of unemployment
A decision made by a rational person
A. would always make the person wealthier. B. is intended to make the person better off. C. is intended to make the person worse off. D. is identical to a decision that would be made by any other person facing the same choices.
For which of the following purchases would the absolute price elasticity of demand be greatest?
A. a luxury sedan B. chewing gum C. a smartphone D. utilities
Which of the following is NOT a possible solution to the problem of pollution?
A. regulating the amount of pollution that a firm can produce B. converting a resource that is communally owned into a privately owned resource C. imposing a tax on polluters that is related to the amount of pollution D. subsidizing the costs of production of activities that generate pollution