A subsidy in an industry would result in: a. an increase in ...

[chads108]

A subsidy in an industry would result in:
 a. an increase in consumer surplus.
  b. an increase in producer surplus
  c. both (a) and (b).
 d. none of the above.

Question 2

A movement up along a short run Phillips Curve to an unemployment rate below the natural rate of unemployment will tend to shift the Phillips Curve up, once expectations adjust; a movement down along a short run Phillips Curve to an unemployment rate above the natural rate of unemployment will tend to shift the Phillips Curve down once expectations adjust.
 a. True
  b. False
  Indicate whether the statement is true or false

[AngeliqueG]

Answer to Question 1

c

Answer to Question 2

True