In the IS-LM model, an easy monetary in conjunction with a tight fiscal policy
a. increases exports and decreases imports.
b. decreases exports and increases imports.
c. encourages foreign capital inflows to the U.S.
d. both b and c.
d. None of the above
D
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Which of the following could create a movement along the short-run Phillips curve so that the unemployment rate temporarily falls below the natural unemployment rate?
A) an increase in aggregate demand and a quickly responsive wage rate B) a decrease in aggregate demand and a sticky wage rate C) an increase in aggregate demand and a sticky wage rate D) an increase in aggregate supply and a sticky wage rate E) a decrease in aggregate demand and a quickly responsive wage rate
The HPAE (High Performance Asian Economies) countries
A) have all consistently supported free trade policies. B) have all consistently maintained import-substitution policies. C) have all consistently maintained non-biased efficient free capital markets. D) have all maintained openness to international trade. E) have all outperformed the U.S.
In order to be able to consume more in the future, you have to consume
A) less today and save the difference. B) more today to increase supply. C) more consumer goods. D) fewer capital goods.
According to Milton Friedman, the short-run trade-off between unemployment and inflation comes from unanticipated inflation
a. True b. False Indicate whether the statement is true or false