Which of the following increases inflation and reduces unemployment in the short run?
a. either an increase in government expenditures by itself or an increase in the money supply growth rate by itself
b. an increase in government expenditures, but not an increase in the money supply growth rate
c. an increase in the money supply growth rate, but not an increase in government expenditures
d. neither an increase in government expenditures nor an increase in the money supply
a
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Use the following information to answer the question below. It is the custom for paper mills located alongside the Layzee River to discharge waste products into the river. As a result, operators of hydroelectric power-generating plants downstream along the river find that they must clean up the river's water before it flows through their equipment. If the government intervenes and corrects the externality in the situation described above, we would expect
A. production in the paper mills to decrease. B. production of the hydroelectric power plants to decrease. C. the price of paper from the mills to decrease. D. the output of the paper mills to increase.
If people assume that future rates of inflation will ________, they are said to have adaptive expectations
A) not be related to inflation rates of the past B) follow the pattern of inflation rates in the past C) be higher than inflation rates of the past D) be lower than inflation rates of the past
In the Malthusian model, state-mandated population control policies are likely to
A) decrease the equilibrium size of the population and increase the equilibrium level of consumption per worker. B) decrease the equilibrium size of the population and have no effect on the equilibrium level of consumption per worker. C) have no effect on the equilibrium size of the population and increase the equilibrium level of consumption per worker. D) have no effect on either the equilibrium size of the population or the equilibrium level of consumption per worker.
The income-expenditure identity for a closed economy is:
A. Y = C + I + G. B. Im ? Ex = C + I. C. Y = C + I + G + NX. D. Y + G = C + I ? NX.