A favorable supply shock shifts the short-run Phillips curve
a. right and inflation rises.
b. right and inflation falls.
c. left and inflation rises.
d. left and inflation falls.
d
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An international lender of last resort creates a serious ________ problem because depositors and other creditors of banking institutions expect that they will be protected if a crisis occurs
A) moral hazard B) adverse selection C) public choice D) strategic choice
The tax that brings in the most revenue in the United States is the
A) capital gains tax. B) corporate income tax. C) Social Security tax. D) personal income tax.
Over the years most monetary policy experts would agree with each of the following statements, except:
A. the reserve requirement is not useful as an operational instrument. B. central bank lending is necessary to ensure financial stability. C. transparency in policy making hinders accountability. D. short-term interest rates are the best tool to use to stabilize short-term fluctuations in prices and output.
According to the article "Why Gold?', silver may be used as money. One problem with using silver as money is that
a. silver is too abundant. b. silver tarnishes over time. c. it is not a precious metal. d. it has a high melting point.