Supply-side economists argue that less government spending will
a. result in less economic stabilization
b. result in more crowding out
c. lower both rates of unemployment and inflation
d. lower the interest rate and lower private investment
e. lower the interest rate and raise private investment
E
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As wages and prices become more flexible ________
A) wages becomes less responsive to unemployment deviations from the natural rate B) it becomes easier to differentiate the short-run from the long-run Phillips curve C) inflation becomes more responsive to unemployment deviations from the natural rate D) all of the above E) none of the above
If P = 2 and Y = 1000 . then which of the following pairs of values are possible?
a. M = $500, V = 4. b. M = $250, V = 8. c. M = $1,000 . V = 2. d. All of the above are correct.
In a monopoly market structure, the supplier in the market always
A. produces too much. B. earns economic profit. C. sells faulty products. D. is the whole industry.
The increase in quality bias in the consumer price index refers to the idea that price increases in the CPI reflect pure inflation, but ________ quality increases. This causes the CPI to ________ the cost of the market basket
A) not; overstate B) also; understate C) also; overstate D) not; understate