An increase in expected inflation shifts the
A. long-run Philips curve right
B. long-run Philips curve left
C. short-run Philips curve right
D. short-run Philips curve left
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If unemployment increases, which of the following could be the government's choice to decrease it?
A. decrease the money supply
B. decrease taxes
C. decrease government expenditures
D. none of the above
An increase in the money supply affects output primarily by ?
A. decreasing interest rates which increases business investment
B. decreasing interest rates which decreases business investment
C. increasing interest rates which increases business investment
D. increasing interest rates which decreases business investment
An increase in interest rates
A. increases the cost of holding money and increases the quantity demanded.
B. increases the cost of holding money and decreases the quantity demanded.
C. decreases the cost of holding money and increases the quantity demanded.
D. decreases the cost of holding money and decreases the quantity demanded.
A policy to reduce inflation is likely to increase unemployment in
A. the short run and the long run
B. the short run but not the long run
C. the long run but not the short run
D. neither the short nort long run
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