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Question
Suppose the economy is producing at the natural rate of output. Assuming a fixed natural rate of output and everything else held constant, the development of a new, more productive technology will cause ________ in the unemployment rate in the short run and ________ in inflation in the short run.A. an increase; an increase
B. a decrease; a decrease
C. a decrease; an increase
D. no change; no change
Answer
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Related questions
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The organization responsible for the conduct of monetary policy in the United States is the
A. Comptroller of the Currency.
B. U.S. Treasury.
C. Federal Reserve System.
D. Bureau of Monetary Affairs.
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A. balanced budgets.
B. rapidly growing money supplies.
C. falling money supplies.
D. constant money supplies.
Q:
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A. exchanges.
B. banks.
C. over-the-counter markets.
D. finance companies.
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B. since deregulation now provide services only to small depositors.
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D. produce nothing of value and are therefore a drain on society's resources.
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Which of the followings does NOT describe the goods market in the ISLM model?
A. consumption function
B. investment function
C. government spending and tax
D. money demand function
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An autonomous increase in money demand, other things equal, shifts the ________ curve to the ________.
A. IS; right
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Q:
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A. exceeds; rise; right
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A. demand; right
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Q:
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A. a Taylor rule.
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D. advocated by activists.
Q:
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B. the Lucas critique.
C. public choice theory.
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Q:
The Lucas critique indicates that
A. advocates of discretionary policies' criticisms of rational expectations models are well-founded.
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Q:
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Q:
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Q:
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Q:
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rate, which will cause investment spending and aggregate output to ________.
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Q:
Explain and demonstrate graphically the effects of a negative supply shock in both the short-run and long-run.
Q:
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Q:
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A. right; appreciate
B. right; depreciate
C. left; appreciate
D. left; depreciate