From a Keynesian viewpoint, the Phillips curve should slope ___________ so that higher unemployment means lower inflation.
a. down
b. up
c. perfectly vertical
d. perfectly horizontal
a. down
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Because a third of government outlays are linked directly to the CPI, as time passes, the CPI bias means that the government's outlays are
A) larger than needed to keep pace with the cost of living. B) larger than needed to keep pace with the cost of living if the CPI is falling from one year to the next, otherwise the outlays are smaller than needed to keep pace with the cost of living. C) exactly equal to the changes in the cost of living. D) smaller than needed to keep pace with the cost of living. E) smaller than needed to keep pace with the cost of living if the CPI is falling from one year to the next, otherwise the outlays are larger than needed to keep pace with the cost of living.
Refer to the scenario above. Based on the given information, we can conclude that the market for used cars has ________
A) information asymmetry B) a perfectly competitive structure C) positive externalities D) negative externalities
In the above figure, is the Fed likely to be afraid that inflation will occur or that a recession will occur? Discuss the appropriate monetary policy that should be made to restore the economy to potential GDP
What will be an ideal response?
Asset trades that deal with equity instruments are best described as
A) share of stock. B) exchange rate. C) bonds. D) bank deposits. E) factors.