Author Question: The curve that shows the relationship between inflation and unemployment when the economy is at full ... (Read 89 times)

meagbuch · **on:** Jun 29, 2018

The curve that shows the relationship between inflation and unemployment when the economy is at full employment is the

A) aggregate supply curve.
B) long-run Phillips curve.
C) long-run Okun's curve.
D) aggregate demand curve.
E) short-run Phillips curve.

Question 2

In the figure above, the SLF curve is the supply of loanable funds curve and the PSLF curve is the private supply of loanable funds curve.

Given these curves, there is a government budget ________ and therefore the real interest rate is ________ than it would be otherwise.
A) deficit; lower
B) surplus; lower
C) deficit; higher
D) surplus; higher
E) deficit; not different