A. decreases unemployment
B. decrease growth
C. increases unemployment
D. decreases inflation
Correct Answer: decreases unemployment ✔
Last Updated: June 18, 2019
Related MCQs
- If people have rational expectations a monetary policy contraction that is announced and is credible could ?
- Refer to Exhibit 6. Suppose the economy is Operating in long-run equilibrium at point E. An unexpected monetary contraction will move the economy in the direction of point ?
- Refer to Exhibit 6.Suppose the economy is in long-run equilibrium at point E. A sudden increase in government spending should move the economy in the direction of point ?
- Refer to Exhibit 6.If People in the economy expect inflation to be 3 percent and inflation is 3 percent the economy is operating at point ?
- A decrease the Price of foreign oil ?
- Which of the following would shift the long-run Phillips curve to the right ?
- According to the Phillips curve, in the short run, if policy makers choose an expansionary policy to lower the rate of unemployment ?
- Along a short-run Phillips curve, ?
- The original Phillips curve illustrates ?
- If a country’s policy makers were to continuously use expansionary monetary policy in an attempt to hold unemployment below the natural rate the long-run result would be ?
- If the sacrifice ratio is five, a reduction in inflation from 7 percent to 3 percent would require ?
- Refer to Exhibit 6. Suppose the economy is operating at point (D) As people revise their price expectations ?
- Refer to Exhibit 6. Suppose the economy is Operating in long-run equilibrium at point E. In the long run a monetary contraction will move the economy in the direction of point ?
- Refer to Exhibit 6.If People in the economy expect inflation to be 6 percent but inflation turn out to be 3 percent the economy is operating at point ?
- The natural rate hypothesis argues that ?
- When actual inflation exceeds expected inflation ?
- An increase in expected inflation ?
- If, in the long run, people adjust their price expectations so that all prices and incomes move proportionately to an increase in the price level then the long-run Phillips curve ?
- The misery index Which some commentators suggest measures the health of the economy, is ?