According to Milton Friedman, there are two Phillips curves, a short-run one and a long-run one
Indicate whether the statement is true or false
True
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Austerity advocates argue that stimulus measures paid for with borrowed money:
A. are the best way to speed up an economic recovery. B. will lead to a reduction in the government budget deficit. C. will lead to substantial inflation and sharply higher interest rates. D. will generate substantial tax revenue for the government.
Assume that a country's government influences the exchange rate through active central bank intervention, with no pre-announced path. This policy is known as a(n):
a. floating exchange-rate policy. b. managed floating exchange-rate policy. c. fixed exchange-rate policy. d. crawling-peg exchange-rate policy. e. interventionist exchange-rate policy.
When government imposes price controls in a market,
a. non-price factors become more important in the rationing of the good. b. efficiency in the market is enhanced. c. shortages and surpluses are eliminated. d. buyers and sellers both become better off.
Monopoly profit is not a social problem because
a. the size of the economic pie grows when monopoly profits increase. b. producers are more efficient than consumers. c. the profit represents a transfer from the consumer to the producer with no loss in total surplus. d. None of the above are correct.