If the actual unemployment rate is less than the natural rate of unemployment, there will be a tendency toward:
a. increased inflation and a leftward shift of the short-run Phillips curve.
b. decreased inflation and a rightward shift of the short-run Phillips curve.
c. increased inflation and a rightward shift of the short-run Phillips curve.
d. decreased inflation and a leftward shift of the short-run Phillips curve.
c
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An increase in exports of goods or services with no change in imports of goods or services
A) decreases GDP. B) increases GDP. C) may increase or decrease GDP depending on whether it is the export of goods or the export of services that increased. D) has no effect on GDP.
In the 1960s, many economists and policy makers considered the trade-off between inflation and unemployment revealed in the Phillips curve to be permanent
This belief was challenged by ________, who argued that there is no trade-off between inflation and unemployment and the long run. A) Paul Samuelson and James Tobin B) Robert Lucas and Thomas Sargent C) Finn Kydland and Edward Prescott D) Milton Friedman and Edmund Phelps
The owner of Speedee Copy Center calculates that purchasing a new $13,000 color copier would return $1800 a year after payment of all expenses besides interest payments on borrowing $13,000
What is the maximum interest rate that makes purchasing the copier profitable? A) 13.84 percent. B) 7.22 percent. C) 8.62 percent. D) 12.16 percent.
Describe what happens to nominal and real interest rates, investment and aggregate demand when money supply shifts right or left, other things equal. When money demand shifts right or left