The tradeoff between inflation and unemployment
a. implies that policies designed to reduce unemployment also reduce inflation.
b. was eliminated by improved economic policies in the 1900s.
c. is a long-run tradeoff, persisting for decades, according to most economists.
d. None of the above are correct.
d
You might also like to view...
The classical theory of inflation:
A. shows neutrality of money in the long run. B. describes a long-run equilibrium. C. explains the direct relationship between money supply and the price level. D. All of these statements are true.
Game theory analysis of macro policy suggests that as voters become more short-sighted
A) policy makers will be tempted to raise taxes. B) policy makers will be forced to balance the budget. C) policy makers will adopt policies today to achieve balanced budgets in the future. D) all of the above E) none of the above
Briefly discuss new growth theory
What will be an ideal response?
The fact that central bankers tend to respond to higher rates of inflation by increasing the real interest rate is:
A. one reason the dynamic aggregate demand curve shifts right. B. one reason the dynamic aggregate demand curve slopes downward. C. one reason the dynamic aggregate demand curve shifts left. D. why the monetary policy reaction curve has a negative slope.