Based on the graph showing an increase in the growth of the money supply, as soon as workers realize their real wages have fallen, they will demand higher wages, which ______.
a. shifts the short-run Phillips curve to the left
b. shifts the short-run Phillips curve to the right
c. moves the economy back down the Phillips curve to Point A
d. moves the economy back up the Phillips curve to Point B
b. shifts the short-run Phillips curve to the right
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Unconventional monetary policies include massive lending to banks and open-market purchases of assets other than Treasury bills.
Answer the following statement true (T) or false (F)
If the government decreases the income tax rate, then:
A. GDP will decrease. B. aggregate demand will shift left. C. aggregate demand will shift right. D. aggregate supply curve with shift to the right.
A positive cross price elasticity of demand between two goods suggests that the goods are
A. not related. B. substitutes. C. complements. D. both of unitary elasticity.
A nonmonetary opportunity cost is
A) an implicit cost. B) an explicit cost. C) a direct cost. D) an accounting cost.