How are the effects of a favorable supply shock shown in the Phillips curve diagram? If the Fed wants to return unemployment to its natural rate after the shock, what should it do?
The short-run Phillips curve shifts left and inflation and unemployment fall. To move unemployment back up towards its natural rate, the Fed would decrease the money supply growth rate.
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In the above figure, if this natural monopolist were forced to use marginal cost pricing, it would sell the product at the price
A) A. B) C. C) E. D) F.
Which of the following is an example of a black market activity?
a. Purchasing banned drugs from an individual in a vacant lot b. Purchasing drugs from a pharmacy c. Purchasing automobiles from an authorized dealer d. Purchasing stocks and bonds
At macroeconomic equilibrium
What will be an ideal response?
Which statement is true about any of the federal budget deficits of the 1990s?
A. The deficits were a little larger than the national debt. B. The deficits and the national debt were about equal. C. The national debt was a little larger than the deficits. D. The national debt was much larger than the deficits.