If an increase in inflation permanently reduced unemployment, then
a. money would not be neutral and the long-run Phillips curve would slope upward.
b. money would not be neutral and the long-run Phillips curve would slope downward.
c. money would be neutral and the long-run Phillips curve would slope upward.
d. money would be neutral and the long-run Phillips curve would slope downward.
b
You might also like to view...
What is one result of the Medicare subsidy?
A) The health care industry is more efficient than it otherwise would be. B) Patients may elect to have some treatments that are of low value to them but that are costly to provide. C) The elderly population in the United States receives a lower quality of medical care than what is provided for the elderly population in other countries. D) The number of physicians in the United States has declined.
Which of the following is a barrier to economic growth in low-income countries?
a. A shortage of labor b. A declining population c. Lack of investment in research and development d. Lack of natural resources e. An increasing amount of savings
Most businesses advertise their products and services. Some business use SPAM emails to advertise because the cost of a mass e-mail is close to zero. Other business spend millions of dollars to advertise in a 30-second spot during the Super Bowl. Having observed this real world data, economists argue that the amount of money that a business spends on advertising is a proxy for a good or service's
a. size. b. quality. c. newness. d. cost of production.
If households view a tax cut as temporary, then the tax cut
a. has no effect on aggregate demand. b. has more of an effect on aggregate demand than if households view it as permanent. c. has the same effect as when households view the cut as permanent. d. has less of an effect on aggregate demand than if households view it as permanent.