Which of the following would move the economy down and to the right along a short run Phillips Curve?
a. Increases in the required reserve ratio by the Fed
b. Increases in taxes by the federal government.
c. Increases in the interest rate that the Fed pays on bank reserves.
d. All of the above.
d
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Economic stagnation coupled with high inflation is commonly called:
A. stagflation. B. inflationary stagnation. C. stagnatory growth. D. inflagnation.
A budget constraint:
A. shows different bundles of goods that all cost the same amount. B. shows different bundles of goods that all yield the same total utility. C. shows how much income is needed to maximize total utility. D. shows different bundles of goods that all maximize an individual's utility.
A kinked demand curve is perceived by the firm as being:
A. more elastic to the right of the kink B. more inelastic to the right of the kink C. more inelastic to the left of the kink D. present when there is a monopoly
Suppose that an Italian ice cream firm is facing a linear demand curve and that the current price for the Italian ice cream is set at a point where the price elasticity is 0.7. If the firm decreases the product price,
A. the demand becomes more inelastic and total revenue increases. B. the demand becomes more inelastic and total revenue decreases. C. the demand becomes less inelastic and total revenue increases. D. the demand becomes less inelastic and total revenue decreases.