Contractionary monetary policy will result in
A) higher interest rates. B) increased rates of inflation.
C) a leftward shift in the long-run Phillips curve. D) an upward shift in the short-run Phillips curve.
A
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The figure above shows a perfectly competitive firm. To maximize its profit, the firm will produce ________ units of output and the price will be ________ for a unit
A) 30; $40 B) 30; $30 C) 20; $40 D) 20; $30
When expansionary fiscal and monetary policies are joined with a ________ exchange rate system, the various components of economic policy often interact in ways that lead to a crisis followed by a steep recession
A) fixed B) floating C) crawling peg D) flexible
Which of the following is an explicit cost?
a. The wages a firm pays to its workers b. The opportunity cost of an owner/entrepreneur's time invested in the firm c. The opportunity cost of the money the business owner/entrepreneur has invested in the firm d. The price of the business owner's/entrepreneur's land used for constructing a factory and a warehouse.
Which of the following policies may decrease the level of capital intensity in industry?
a. an increase in the cost of capital b. a decrease in the minimum wage c. an increase in the elasticity of substitution d. All of the above