Author Question: The key to understanding the short-run trade-off behind the Phillips curve is that an increase in ... (Read 57 times)

lunatika · **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.