When both inflation and unemployment are concerns, supply-side economists argue in favor of policies to shift the
A. aggregate supply curve to the right and lower the CPI, while Keynesian fiscal policy would shift the aggregate demand curve to the right and increase the CPI.
B. aggregate supply curve to the left and raise the CPI, while Keynesian fiscal policy would shift the aggregate demand curve to the left and decrease the CPI.
C. aggregate supply curve to the right and lower the CPI, which is the same policy Keynesian economists would advocate.
D. aggregate demand curve to the right because unemployment is a more important concern than inflation.
Answer: A
You might also like to view...
The interest rate that the Fed charges when it makes a last resort loan is the ________ rate
A) discount B) short-term C) reserve D) federal funds
Investment in human capital implies:
a. investment on machines, technological development, and equipments. b. expenses on education. c. expenses on paying interest for hiring real capital. d. expenses on the purchase of land. e. profit of the entrepreneurs.
Proponents of the minimum wage implicitly assume that the ________ if they discount the unemployment effects of the policy.
A. demand curve for unskilled workers is inelastic B. supply curve for unskilled workers is inelastic C. supply curve for unskilled workers is highly elastic D. demand curve for unskilled workers is highly elastic
Which of the following definitely means productivity has increased?
A. More output from fewer workers. B. Less output from fewer workers. C. Less output from more workers. D. More output from more workers.