Suppose expected inflation and actual inflation are both low, and unemployment is at its natural rate. If the Fed then pursues an expansionary monetary policy, which of the following results would be expected in the short run?
a. The short-run Phillips curve would shift to the left.
b. The short-run Phillips curve would shift to the right.
c. The economy would move up and to the left along a given short-run Phillips curve.
d. The economy would move down and to the right along a given short-run Phillips curve.
c
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Assume toys are produced using only labor and wood. Which of the following best describes the cost of producing toys?
a. The number of dollars that the laborer spends to purchase the wood. b. The amounts of labor and wood used in the production process. c. The alternative uses that could be found for the labor and wood. d. The monetary value of the labor and wood used.
If manager performance is easily observable then
A) profits will be maximized for the firm. B) the owner can directly reward the manager. C) the manager will attempt to manipulate the reported profit. D) the firm's stock price will go up.
When a firm practices perfect price discrimination,
a. The demand curve is very inelastic b. The demand curve is the marginal revenue curve c. The demand curve is very elastic d. The marginal cost curve is the average cost curve
There is a positive relationship between the quantity of reserves supplied and the federal funds rate
a. True b. False Indicate whether the statement is true or false