Which of the following is correct according to the long-run Phillips curve?
a. No government policy, including changes in the money supply growth rate, can change the natural rate of unemployment.
b. Changes in the money supply growth rate are the only means by which government policy can change the natural rate of unemployment.
c. Monetary policy cannot change the natural rate of unemployment, but other government policies can.
d. Monetary policy and other government policies can shift the long-run Phillips curve.
c
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If the exchange rate rises, the quantity of dollars supplied
A) decreases, and there is movement down along the supply curve. B) increases, and there is movement up along the supply curve of dollars. C) increases with movement down along the supply curve. D) does not change. E) increases, and there is movement down along the supply curve.
A change in ________ results in a movement along the short-run aggregate supply curve but does not shift the short-run aggregate supply curve
A) the money wage rate B) technology C) the quantity of capital D) the price level
In developed countries, tariffs on raw materials tend to be
A) highest of all. B) higher than on manufactured goods. C) equal to tariffs on manufactured goods. D) lower than on manufactured goods.
If the Fed set and achieved a goal of zero unemployment,
A) the inflation rate would increase. B) real GDP would equal potential GDP. C) they would have an easier time achieving the goal of price stability. D) the natural rate of unemployment would be negative.