A temporary decline in productivity would cause the IS curve to
A) shift up and to the right.
B) shift down and to the left.
C) remain unchanged.
D) shift up and to the right only if people face borrowing constraints.
C
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If the actual rate of inflation exceeds the expected rate of inflation, the actual real wage is greater than the expected real wage and unemployment falls
Indicate whether the statement is true or false
Which of the following is an advantage of fixing exchange rates?
A) limiting foreign exchange risk B) making residents more mobile across countries C) eliminating trade deficits D) making the prices of foreign goods more flexible in the domestic market
The most important determinant of a household's consumption spending is
a. its disposable income
b. the in-kind transfers received by the household.
c. the level of education of the members of the household.
d. the interest rate.
e. the ratio of wage to non-wage income of the household.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, an increase in unemployment may be represented by the movement from
A. B to A. B. A to C. C. C to D. D. B to D.