Movements up along a particular short run Phillips curve are not consistent with:
a. Increases in aggregate demand
b. Movements up along the short run aggregate supply curve.
c. Movements up along the long run aggregate supply curve.
d. Movements up along a particular short run Phillips curve are consistent with all of the above.
c
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Refer to Table 3-1. The table above shows the demand schedules for Kona coffee of two individuals (Luke and Ravi) and the rest of the market. If the price of Kona coffee falls from $6 to $4, the market quantity demanded would
A) decrease by 89 lbs. B) increase by 110 lbs. C) increase by 61 lbs. D) increase by 26 lbs.
The sum of money spent by a person to purchase a new home is considered as a part of investment spending
a. True b. False Indicate whether the statement is true or false
What restricts the Fed's ability to write checks and purchase U.S. securities?
a. Congress; the Fed must receive a budget allocation from Congress before it can write a check. b. The gold requirement; the Fed cannot write a check unless it has a sufficient amount of gold to back the expenditure. c. Reserve requirements; the Fed must maintain 20 percent of its assets in the form of cash against the deposits that it is holding for commercial banks. d. Nothing; the Fed can create money simply by writing a check on itself.
To combat unemployment the government should use fiscal and monetary policies to
a. run a deficit and increase the money supply. b. run a deficit and decrease the money supply. c. run a surplus and increase the money supply. d. run a surplus and decrease the money supply.