According to the long-run Phillips curve, if the Fed increases the growth rate of the money supply, what happens to the inflation rate and the unemployment rate in the long run?
The inflation rate rises and the unemployment rate is unchanged.
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If consumers suddenly became more optimistic ________
A) they would spend more at any given inflation rate B) planned expenditures would decline C) the aggregate demand curve would shift to the left D) all of the above E) none of the above
If the marginal propensity to save (MPS) is 0.1, the multiplier will be
A) 0.1. B) 1. C) 5. D) 10.
When a business firm makes an investment in physical capital, that investment is subject to _____.
a. state and local government incentives b. economic output and productivity c. political orientated incentives d. the discipline of the market
Nations typified by high rates of illiteracy, high unemployment, high fertility rates, and exports of primary products are known as ________
a. developed countries b. high-income countries c. industrial market countries d. developing countries