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Author Question: The key to understanding the short-run trade-off behind the Phillips curve is that an increase in ... (Read 59 times)

lunatika

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on: Jun 29, 2018
The key to understanding the short-run trade-off behind the Phillips curve is that an increase in inflation will decrease unemployment if the inflation is ________ by both workers and firms.
 
  A) ignored B) perfectly predicted C) expected D) unexpected

Question 2

An increase in government purchases, ceteris paribus, will
 
  A) increase public saving. B) reduce investment.
  C) increase the supply of loanable funds. D) reduce real GDP.


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Anton

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Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

B


lunatika

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

marict

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Reply 3 on: Yesterday
Wow, this really help

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