The vertical long-run Phillips curve
a. implies that the Fed cannot influence the unemployment rate in the long run.
b. implies that the Fed can influence the unemployment rate in the long run.
c. implies that the Fed can influence both the unemployment rate and the inflation rate in the long run.
d. implies that the Fed can reduce the unemployment rate in the long run only at the expense of higher inflation rate.
e. none of the above.
A
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The economy is at the equilibrium shown at point a in the above figure. If the Fed
A) sells government securities, the economy moves to an equilibrium at point b. B) buys government securities, the economy moves to an equilibrium at point c. C) sells government securities, the economy moves to an equilibrium at point c. D) buys government securities, the economy moves to an equilibrium at point b. E) None of the above is correct because the economy will remain at point a if the Fed buys or if the Fed sells government securities.
In most major countries, including Japan, Canada, and the US, fluctuations in consumption are
a) countercyclical and more volatile than GDP b) countercyclical and less volatile than GDP c) procyclical and more volatile than GDP d) procyclical and less volatile than GDP e) unrelated to fluctuations in GDP
A graph illustrating how a variable changes over time is called a time-series graph.
Answer the following statement true (T) or false (F)
Why study the economics of agriculture in the United States? Give five reasons
What will be an ideal response?