Higher unemployment and higher inflation rates will most likely occur with
A. A rightward shift of the aggregate supply curve.
B. A leftward shift of the aggregate demand curve.
C. A rightward shift of the aggregate demand curve.
D. A rightward shift of the Phillips curve.
Answer: D
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To help pay for the cost of sport related injuries, the government imposes a tax on sellers of all sports equipment. The deadweight loss created by this tax would be greater than shown in the figure above if
A) the demand were more elastic. B) the supply were more elastic. C) neither of the above. D) both A and B above.
What is the difference between fiscal policy and monetary policy?
What will be an ideal response?
An appreciation of the U.S. dollar ________ the price of U.S. imports, and ________ the price of U.S. exports
A) lowers, lowers B) increases, increases C) increases, lowers D) lowers, increases
Supply-side tax cuts designed to increase investment spending are attractive in theory, but in practice
a. the effect is the opposite of what theory suggests. b. are less useful, because they take a long time to increase the capital stock. c. they have no effect on the capital stock in the short or long run. d. are powerful in the short run as capital stock rapidly increases, but the effect tapers off in the long run.