The economy is in long-run equilibrium when Senator Soldout argues that the Fed should do more to fight unemployment. He argues that if the Fed increased the money supply faster, more workers would find jobs. The Senator's argument
a. is completely correct.
b. is completely wrong.
c. is true for the short run but not the long run.
d. is true for the long run but not the short run.
c
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Economic analysis and policy are made more difficult by
A. having so much data to work with. B. inadequate and imperfect information. C. an incomplete consensus on the basic goals of social policy. D. the lack of public interest and opinion on economic questions. E. the major economic problems society faces.
When the natural unemployment rate increases,
A) both the long-run Phillips curve and the short-run Phillips curve shift leftward. B) there are no shifts of either the long-run Phillips curve or the short-run Phillips curve. C) both the long-run Phillips curve and the short-run Phillips curve shift rightward. D) the long-run Phillips curve shifts leftward, and the short-run Phillips curve shifts rightward. E) the long-run Phillips curve shifts rightward, and the short-run Phillips curve shifts leftward.
In the United States in 2014, the highest marginal tax rate for individual income taxes was 39.6%
Indicate whether the statement is true or false
To say that demand is elastic means that
A. people do not like the good very much. B. relatively small changes in quantity demanded lead to relatively small changes in price. C. relatively small changes in price lead to relatively large changes in quantity demanded. D. quantity demanded not very responsive to price changes.