If a central bank announced that it was going to decrease inflation by 5%, people revised their inflation expectations downward by 4%, and the central bank only lowered inflation by 1%, the short run Phillips curve would shift
a. right and unemployment would rise.
b. right and unemployment would fall.
c. left and unemployment would rise.
d. left and unemployment would fall.
d
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As a result of contractionary monetary policy
A) interest rates fall, the dollar depreciates, and domestic goods become cheaper, thereby reducing net exports. B) interest rates rise, the dollar appreciates, and domestic goods become more expensive, thereby reducing net exports. C) interest rates rise, the dollar appreciates, and domestic goods become cheaper, thereby reducing net exports. D) interest rates rise, the dollar appreciates, and domestic goods become cheaper, thereby increasing net exports.
Why do economists view structural budget deficit as a good measure of the direction of the fiscal policy?
What will be an ideal response?
An increase in growth rates will cause the production possibilities curve to
A. shift outward. B. shift inward. C. become steeper. D. become flatter.
Refer to the information provided in Table 13.1 below to answer the question(s) that follow. Table 13.1Price ($)Quantity4.002,0003.502,4003.002,8002.503,2002.003,6001.504,0001.004,400Refer to Table 13.1. If a monopoly faces the demand schedule given in the table and has a constant marginal and average cost of $1 per unit of providing the product, what is the maximum profit the monopoly can earn?
A. $4,800 B. $5,600 C. $6,000 D. $8,400