If expected inflation increases:
A. the short-run Phillips curve remains unchanged.
B. the short-run Phillips curve shifts up.
C. the short-run Phillips curve shifts down.
D. there is a movement along a short-run Phillips curve.
Answer: B
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Aggregate output is ________ related to autonomous consumer expenditure, and is ________ related to the level of taxes
A) negatively; negatively B) negatively; positively C) positively; negatively D) positively; positively
If the economy experiences a recession, the federal government's tax receipts will
A. decrease. B. remain the same. C. fall to zero. D. increase.
International reserves include all except one of the following. Which is the exception?
a. gold b. dollars c. yen d. Special Drawing Rights e. oil
The McDonald's restaurants in Russia grow their own potatoes to guarantee that they are grown correctly. Growing potatoes is very different from running a fast-food restaurant. One could say of McDonald's decision to grow its own potatoes for the Russian franchise that
a. the bounded rationality criterion outweighs the need for quality control b. the bounded rationality criterion is outweighed by the need for quality control c. both bounded rationality and the need for quality control are factors that make it rational for McDonald's to grow its own potatoes d. growing potatoes is irrational e. there must not be many potato suppliers in Russia