The aggregate supply curve is vertical at the level of real GDP that corresponds to the natural rate of unemployment
a. True
b. False
Indicate whether the statement is true or false
True
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In the market for bank reserves, the supply of reserves is
A) an upward sloping curve. B) a downward sloping curve. C) a vertical curve. D) none of the above.
Economic policies often have effects that their architects did not intend or anticipate
a. True b. False Indicate whether the statement is true or false
Consider the indifference curve map for nickels and quarters. Assume nickels are on the horizontal axis and quarters are on the vertical axis. The indifference curves for nickels and quarters are
a. straight lines with slope of -1/5. b. straight lines with a slope of -1. c. straight lines with a slope of -5. d. L shaped.
Suppose an increase in interest rates causes rising unemployment and falling output. To counter this, the Federal Reserve would
a. increase government spending. b. increase the money supply. c. decrease government spending. d. decrease the money supply.