To stabilize real GDP when the money demand curve shifts on its own, the Fed must change the money supply
a. True
b. False
A
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"The short-run Phillips curve is vertical at the natural unemployment rate." Is the previous statement correct or incorrect?
What will be an ideal response?
What are fiscal and monetary policies? Do they have an immediate effect on the AD curve or the SAS curve?
What will be an ideal response?
The government proposes a tax on halogen light bulbs. Sellers will bear the entire burden of the tax if the
A) demand curve is downward sloping and the supply curve is upward sloping. B) demand curve for halogen bulbs is horizontal. C) demand curve for halogen bulbs is vertical. D) supply curve of halogen bulbs is horizontal.
Inflation refers to a(n) ________ in the overall ________.
A. increase; unemployment rate B. decrease; price level C. decrease; unemployment rate D. increase; price level