In the Keynesian model, and increase in government spending financed with an increase in taxes will
a. move an economy left along its Phillips curve.
b. shift the Phillips curve to the up.
c. move an economy right along its Phillips curve.
d. shift the Phillips curve down.
e. not affect the Phillips curve.
C
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Suppose we want to know how much money your grandparents would have to earn now to have purchasing power equivalent to their income in 1969. We could:
A. translate their nominal income in 1969 into constant, real dollars of today. B. translate their nominal income today into 1969 dollars. C. take a ratio of their income today with their income from 1969. D. None of these statements is true.
A luxury good has
A) a negative income elasticity. B) a cross elasticity of one. C) a very high income elasticity. D) a negative price elasticity.
Compared to the no-trade situation, when a country exports a good,
a. domestic consumers gain, domestic producers lose, and the gains outweigh the losses. b. domestic producers gain, domestic consumers lose, and the gains outweigh the losses. c. domestic consumers gain, domestic producers lose, and the losses outweigh the gains. d. domestic producers gain, but domestic consumers lose an equal amount.
Of the following, which would not be considered an unconventional monetary policy approach?
A. Discount rate B. Policy duration commitment C. Credit easing D. Quantitative easing