Once the Phillips curve has shifted down, the economy is ________ because ________
A) better off; every unemployment rate becomes associated with a higher inflation rate
B) better off; every inflation rate becomes associated with a lower unemployment rate
C) worse off; every inflation rate becomes associated with a higher unemployment rate
D) worse off; every unemployment rate becomes associated with a lower inflation rate
B
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Over the last 100 years, the average U.S. growth rate in real GDP per person was about
A) 2 percent per year. B) 6 percent per year. C) 12.5 percent per year. D) 1 percent per year.
Which of the following can be concluded about the long-run performance of the U.S. economy? a. It has been able to create employment opportunities but only at the cost of high inflation. b. It has failed to generate sufficient aggregate demand in the economy
c. It has been one of the most productive economies in the world in terms of growth in real GDP. d. It has focused fiscal policies mostly at improving aggregate supply. e. It has suffered from huge fiscal deficits that dampened economic growth.
If there is a shortage in the market for loanable funds, what happens to desired saving and desired investment as the interest rate moves to its equilibrium value?
a. desired saving and desired investment both fall b. desired saving and desired investment both rise c. desired saving falls and desired investment rises d. desired saving rises and desired investment falls
A nation can increase its production possibilities by:
A. shifting resources from investment good production to consumer good production. B. shifting resources from private goods to public goods. C. reducing international trade. D. improving labor productivity.