In 2001, Congress and President Bush instituted tax cuts. According to the short-run Phillips curve, in the short run this change should have
a. reduced inflation and unemployment.
b. raised inflation and unemployment.
c. reduce inflation and raised unemployment.
d. raised inflation and reduced unemployment.
d
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As the price of gasoline rose during the 1970s, consumers cut back on their use of gasoline relative to other consumer goods. This situation contributed to which bias in the consumer price index?
a. Substitution bias. b. Transportation bias. c. Quality bias. d. Indexing bias.
The definition of M2 includes:
A. cash and checking account balances. B. hard money and savings account balances. C. cash, checking account, and savings account balances. D. cash, checking accounts, savings accounts, and other financial instruments where money is locked away for a specified period of time.
Informational asymmetry may apply to a hidden action or hidden characteristic where the informed party may be reluctant to reveal relevant information
a. True b. False Indicate whether the statement is true or false
The net benefits of entering into an OCA are calculated by:
A) measuring the symmetry between the political structures of the nations. B) measuring the variability of exchange rates between the nations. C) comparing the efficiency benefits of market integration versus the costs of abandoning discretionary monetary policy. D) comparing the trade balances between the nations with growth in GDP for each nation.