The traditional Phillips Curve suggests that, if government uses an expansionary fiscal policy to stimulate output and employment:
A. unemployment may actually increase because of the crowding-out effect.
B. tax revenues may increase even though tax rates have been reduced.
C. deflation may result.
D. the natural rate of unemployment may
C. deflation may result.
You might also like to view...
Which of the following is a term for an innovative new product or production technology which disrupts the status quo in a market, leading the innovators to earn more income and profits and the other firms to lose income and profits, unless they can come up with their own innovations?
a. disruptive technological change b. disruptive market change c. disruptive trade change d. disruptive transfer change
The difference between the acquisition price of a company and the fair value of the acquired assets of the business is referred to as
a. float b. goodwill c. depreciation d. amortization e. inventory
Suppose that at the current level of output, price = $12, MC = $14, AVC = $7, and ATC = $9. Which of the following is TRUE?
A) The firm should decrease output. B) The firm should shut down. C) The firm should increase output. D) The firm should maintain the current level of output.
Dumping is defined as the situation in which
A) foreign producers sell a product at a price below the cost of production. B) domestic producers are protected by tariffs. C) domestic producers sell a product at prices below the cost of production. D) foreign producers sell a product at a price above a fair level. E) domestic producers cut production to drive up domestic prices.