The modern view of the Phillips curve indicates that in the long run there
a. is no trade-off between inflation and unemployment.
b. is a definite trade-off between unemployment and inflation.
c. will be a trade-off if the rational expectations hypothesis is correct.
d. may be a long-run trade-off between unemployment and inflation, but there is no such trade-off in the short run.
A
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For a given supply elasticity, the more inelastic the demand for a good, the larger the share of the tax paid by the
A) buyers. B) sellers. C) participants other than the buyers and sellers. D) government. E) None of the above answers is correct.
Given the consumption function C = $500 billion + 0.80Y, an increase in disposable income from $6,000 billion to $7,000 billion will cause consumption to increase by:
a. $800 billion. b. $1,000 billion. c. $1,300 billion. d. $1,500 billion. e. $1,800 billion.
Which of the following is a tool of monetary policy often used by the Fed for altering the reserves of commercial banks?
A. Open-market operations B. Check collection C. Issuing currency D. Reserve requirement
The suburbanization of America _______________ the United States' dependence on oil imports.
A. increased substantially B. had no effect C. decreased substantially