As wages and prices become more sticky ________. A) the ...

[Deast7027]

As wages and prices become more sticky ________.
 
  A) the short-run Phillips curve gets flatter
  B) wages become less responsive to unemployment deviations from the natural rate
  C) it becomes easier to differentiate the short-run from the long-run Phillips curve
  D) all of the above
  E) none of the above

Question 2

When there are credit-market imperfections, an increase in government debt may be advantageous because it
 
  A) discourages credit-constrained consumers from borrowing too much.
  B) allows credit-constrained consumers to consume more.
  C) eliminates the problems that cause credit-market imperfections.
  D) encourages more private saving.

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Answer to Question 1

D

Answer to Question 2

B

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