According to the short-run Phillips curve, inflation
a. and unemployment would fall if the policymakers decreased the money supply.
b. would fall and unemployment would rise if policymakers decreased the money supply.
c. and unemployment would fall if the policymakers increased the money supply.
d. would fall and unemployment would rise if policymakers increased the money supply.
b
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When real planned saving is greater than real planned investment spending
A) real GDP will increase. B) the interest rate will increase. C) the interest rate will decrease. D) real GDP will decrease.
Changes in which of the following shifts the aggregate supply curve? i. the price level ii. the money wage rate iii. potential GDP
A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii
The fact that resources tend to be specialized is one reason the production possibilities frontier is drawn
a. bowed outward. b. bowed inward. c. as a straight line (but not horizontal). d. as a horizontal straight line.
With each additional unit consumed, ______ decreases.
a. marginal utility b. consumer equilibrium c. product substitution d. total utility