According to the Phillips curve, policymakers would reduce inflation but raise unemployment if they
a. decreased the money supply.
b. increased government expenditures.
c. decreased taxes.
d. None of the above is correct.
a
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Buying a cup of coffee with a dollar bill represents the use of money as a:
a. medium of exchange. b. unit of account. c. store of value. d. all of these.
The real, bilateral exchange rate is the:
a. Weighted-average value of a currency relative to many foreign currencies. b. Value of one currency in terms of another currency. c. Nominal, bilateral exchange rate adjusted for the international price levels of the two countries. d. Nominal, effective exchange rate adjusted for a nation's price level relative to many foreign countries' prices.
When the supply of credit is fixed, an increase in the price level stimulates the demand for credit, which in turn reduces consumption and investment spending. This argument is called the:
A. real balances effect. B. interest-rate effect. C. net exports effect. D. substitution effect.
Use the following choices regarding the various types of unemployment to describe this situation. Joe is looking for work as a machinist after his and most other machinist jobs were eliminated, replaced by computer-operated machines.
A. Frictional unemployment B. Structural unemployment C. Natural unemployment D. Cyclical unemployment