Liberals tend to favor increasing taxes as the method of counteracting inflation
a. True
b. False
Indicate whether the statement is true or false
True
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The short-run Phillips curve shows ________ between the unemployment rate and the inflation rate, and the long-run Phillips curve shows ________ between the unemployment rate and the inflation rate
A) a positive relationship; a negative relationship B) a negative relationship; a positive relationship C) no relationship; a negative relationship D) a negative relationship; no relationship E) no relationship; no relationship
If the university administration plans to cut tuition charges in the hope of attracting more students and thereby increasing tuition revenues, we know
A) they are assuming an elastic demand. B) they are assuming an inelastic demand. C) they cannot succeed because of the law of demand. D) they must be running in the red. E) they will only succeed if more students can be enrolled at no cost.
In the short-run along the horizontal portion of the aggregate supply curve, an increase in the budget deficit and an expansionary monetary policy would:
A) increase the price level only. B) increase both the price level and real income. C) increase real income only. D) none of the above.
An improvement in the quality of capital would: a. rotate the per-worker production function upward
b. make the per-worker production function flatter. c. shift the per-worker production function downward. d. rotate the per-worker production function downward. e. have no effect on the per-worker production function.