According to the Phillips curve, a more expansionary macro-policy that causes inflation to be greater will:
A. place downward pressure on prices.
B. reduce unemployment.
C. reduce output.
D. reduce the natural rate of unemployment.
Answer: B
You might also like to view...
We see evidence of shortages when we see scarce goods beginning to be acquired by
A) price decreases. B) rising nonmoney costs. C) the money price. D) unfair means.
Many of the important international governmental institutions that deal with the global economy have their roots in the Bretton Woods conference at the end of World War II
Indicate whether the statement is true or false
Prejudice can generate market forces that lead to a permanent shift of an unfavored minority into low-wage jobs when the prejudice originates with
a. employees or customers b. employers, employees, or customers c. employees only d. employers or employees e. customers only
A budget deficit will be most inflationary if the aggregate
a. demand curve is very steep. b. demand curve is very flat. c. supply curve is very flat. d. supply curve is very steep.