During the financial crisis Congress and President Obama authorized tax cuts and increases in government spending. According to the Phillips curve, in the short run these policies should have
a. reduced inflation and unemployment.
b. raised inflation and unemployment.
c. reduced inflation and raised unemployment.
d. raised inflation and reduced unemployment.
d
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“Protection” is designed to help
A. firms whose relative inefficiency does not permit successful competition with imports. B. workers who have very high productivity, and cannot survive against low-paid foreign workers. C. government that needs revenue from tariffs and quotas to cover government spending. D. firms that are highly efficient and cannot survive against low-price foreign imports.
Which of the following statements about speculators is not true?
a. Speculators use the forward market extensively. b. Speculators provide the foreign exchange market with liquidity c. Speculators make foreign exchange markets more efficient. d. Speculators cannot be completely shut out of the forward market, although the forward market is not intended for speculators. e. Only major currencies have very liquid forward markets
Elasticities measure how responsive buyers and sellers are to ______.
a. overproduction b. deadweight losses c. price changes d. product quality
If the minimum wage is set too high, in some labor markets we can expect to see:
A. a shortage of labor. B. an increase in on-the-job training. C. a surplus of labor. D. a decline in wage costs.