The Short run Phillips curve can shift in response to changes in ?
A. Inflationary expectations
B. unemployment
C. the inflation rates
D. wage rates
The Phillips curve shows the trade-off between _____ and _____?
The Phillips curve shows the trade-off between _____ and _____?
A. the inflation rate, interest rates
B. the inflation rate, the unemployment rate
C. interest rates, output
D. output, employment
During Periods of rising inflation and rising interest rates we expect the demand for real cash to ?
During Periods of rising inflation and rising interest rates we expect the demand for real cash to ?
A. rise
B. fall
C. not changes
D. fluctuates
The quantity theory of money says that changes in ____lead to equivalent changes in ____ but have no effect on ______?
The quantity theory of money says that changes in ____lead to equivalent changes in ____ but have no effect on ______?
A. prices, wages, output and employment
B. output prices, employment
C. nominal money, the price level, output and employment
D. nominal money output prices
Expansionary fiscal policy in the classical model will cause aggregate demand to _______ potential output?
Expansionary fiscal policy in the classical model will cause aggregate demand to _______ potential output?
A. exceeds
B. fall below
C. fluctuate around
D. remain equal to
At the intersection of AD and AS equilibrium is achieved in ?
At the intersection of AD and AS equilibrium is achieved in ?
A. the goods market
B. the money markets
C. the labor markets
D. all of these
In the classical model, potential output cannot be increased by ?
In the classical model, potential output cannot be increased by ?
A. monetary growth
B. better technology
C. more capital
D. higher labor supply
The AD schedule indicates that _______ inflation is associated with ________ output?
The AD schedule indicates that _______ inflation is associated with ________ output?
A. higher, lower
B. higher, higher
C. lower, lower
D. zero, zero
All the following are types of monetary policy expect ?
All the following are types of monetary policy expect ?
A. a nominal money stock target
B. a balanced budget
C. an inflation target
D. The pursuit of a target real interest rate
The relative-wage explanation for the existence of downwardly sticky wages emphasizes ?
The relative-wage explanation for the existence of downwardly sticky wages emphasizes ?
A. the contention that workers in one industry may be unwilling to accept a wage cut unless they know that workers in other industries are receiving similar cuts
B. employment contracts that stipulate workers’ wages usually for a period of one to three years
C. unspoken agreements between workers and firms that firms will not cut wages
D. the incentive that firms may have to hold wages above the market clearing rate