One way of expressing the concept of the short-run Phillips curve is to say that:
a. the cost of reducing unemployment is higher inflation
b. nothing but good comes from reducing unemployment.
c. the cost of reducing inflation is lower unemployment.
d. aggregate supply and aggregate demand will always be equal at the potential output level.
e. the best economic policy is one that attempts to make the rate of inflation equal to the rate of unemployment.
a
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If there is unplanned inventory decumulation there is excess
A) demand for bonds. B) supply of bonds. C) demand for commodities. D) supply of commodities.
What role did the Reconstruction Finance Corporation play in the banking collapse of the early 1930s?
a. It provided loans to troubled banks. b. It provided insurance for consumer deposits. c. Its new regulations forced undercapitalized banks out of business. d. Its failure sparked a widespread run on bank deposits.
When managers of firms are given fixed salaries, which are not tied to the firm's profits, they generally put forth less effort than they otherwise would. This is an example of:
A. risk aversion. B. adverse selection. C. moral hazard. D. None of the answers are correct.
Economists consider the long run as a period of more than one year.
Answer the following statement true (T) or false (F)