Which of the following models imply that a decrease in the money supply reduces unemployment temporarily but not permanently?
a. both the long-run Phillips curve and the aggregate supply and aggregate demand model.
b. the aggregate demand and aggregate supply model, but not the long-run Phillips curve.
c. the long-run Phillips curve, but not the aggregate demand and aggregate supply model.
d. neither the long-run Phillips curve nor the aggregate supply and aggregate demand model.
a
You might also like to view...
Tax cuts proposed by the Kennedy and Reagan administrations were followed by robust economic growth
a. True b. False Indicate whether the statement is true or false
The nominal value of any economic statistic refers to the number that is actually announced at that time, while the ________________ refers to the statistic after it has been adjusted for inflation.
Fill in the blank(s) with the appropriate word(s)
Top-down management of an economy by the government has consistently
A. caused double-digit increases in GDP. B. created incentives and opportunities for businesses to expand. C. led to low rates of economic growth. D. produced exceptional results in economic growth.
When revenue is less than total cost but more than variable cost it implies that:
a. the firm is enjoying positive economic profits. b. the firm is earning normal profits. c. the firm can cover its variable cost and a part of its fixed costs. d. the firm is unable to cover its costs and should shut down. e. the firm is able to cover both its fixed and variable costs.