If the Fed increases the money supply, then 1/P
a. falls, so the value of money falls.
b. falls, so the value of money rises.
c. rises, so the value of money falls.
d. rises, so the value of money rises.
a
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When it was introduced in 1958, the Phillips curve presented policymakers with a "menu" from which they could choose the appropriate:
a. combination of monetary and fiscal policy. b. combination of inflation and unemployment. c. level of aggregate money supply. d. income tax rate.
Suppose that in 2020 the average citizen's federal tax bill is $11,888 per person, and total federal spending is $13,997 per person. In 2020, the federal government will have
a. a per person budget surplus of $2,109. b. a per person budget deficit of $2,109. c. horizontal equity. d. vertical equity.
The breath-taking view of the San Francisco skyline at night is
A. a non-excludable good/service and nonrival. B. a non-excludable good/service but rival in consumption. C. an excludable good/service and rival in consumption. D. an excludable good/service but nonrival in consumption.
Refer to the supply and demand graph below for a public good. Point c on the graph shows where the:
A. Total benefit equals the total cost of the public good
B. Marginal benefit equals the marginal cost of the public good
C. Average benefit equals the average cost of the public good
D. Total benefit of the public good is at the maximum