With respect to Friedman's natural rate theory, expansionary monetary policies can
a. move output above the natural rate but leave unemployment at the natural rate in the short-run.
b. only affect inflation and not unemployment in the long-run.
c. leave output at its natural rate with a simultaneous decrease in the natural rate of employment.
d. move output and employment below the natural rate.
B
You might also like to view...
"Higher ethanol production definitely and directly raises the price of corn," said USDA economist Ephraim Leibtag. In the short run in the corn market, what is TRUE if the production of ethanol increases?
A) The demand curve for individual corn farmers will shift upward. B) The price individual corn farmers receive will decrease. C) The total cost curve for individual corn farmers will shift upward. D) The marginal cost curve for individual corn farmers will shift downward.
A bank that has no excess reserves
A) cannot create loans. B) is not in equilibrium. C) is on the brink of bankruptcy. D) has no required reserves.
In what year did the technology stock bubble burst?
A. 2000 B. 2006 C. 2007 D. 2008
A congressman states, "If a government attempts to increase employment through increased government spending, all we will end up with is a higher price level." This congressman assumes that the
A. aggregate supply curve is a vertical line. B. aggregate demand curve is a horizontal line. C. aggregate demand curve is a vertical line. D. aggregate supply curve is a horizontal line.