If the Fed wants to move the economy up and to the left along the Phillips curve, what must it do?
a. Increase the rate at which the aggregate supply curve shifts upward
b. Decrease the rate at which the aggregate demand curve shifts rightward
c. Increase the rate at which the aggregate demand curve shifts rightward
d. Increase the rate at which the aggregate demand curve shifts leftward
e. Decrease the rate at which the aggregate supply curve shifts upward
C
You might also like to view...
Which of the following is NOT a monetary policy goal?
A) keeping long-term interest rates moderate B) maintaining stable prices C) keeping a high exchange rate for the dollar D) promoting maximum employment E) All of the above are monetary policy goals.
Discuss the different effects on the domestic interest rates when prices are assumed flexible and when they are assumed to be sticky
What will be an ideal response?
In perfect competition:
(a) A few firms dominate the industry. (b) Firms are price makers. (c) There are many buyers but few sellers. (d) There are many buyers and sellers.
The descriptions give the responses of four individuals to a Bureau of Labor Statistics (BLS) survey of employment.1. Mollie just graduated from college and is now looking for work. She has had three job interviews in the past month.2. George works in an automotive assembly plant. He was laid off six months ago as the economy weakened. He expects to return to work in several months when national economic conditions improve.3. Jeanette worked as an aircraft design engineer for a company that produces military aircraft until she lost her job last year when the federal government cut defense spending. She has been looking for similar work for a year, but no company seems interested in her aircraft design skills.4. Ricardo lost his job last year when his company downsized and laid off
middle-level managers. He tried to find another job for a year but was unsuccessful and quit looking for work.Refer to the above information. Which individual is frictionally unemployed? A. 1 B. 2 C. 3 D. 4