Author Question: The long-run Phillips curve applies when the economy is at full employment, so the long-run Phillips ... (Read 57 times)

Zoey63294 · **on:** Jun 29, 2018

The long-run Phillips curve applies when the economy is at full employment, so the long-run Phillips curve is ________, which demonstrates that changes in the inflation rate ________ effect on unemployment.

A) horizontal; have no
B) an upward sloping straight line with a 45 degree slope; have an
C) vertical; have no
D) vertical; have an
E) a downward sloping straight line with a 45 degree slope; have an

Question 2

In the short run, to decrease the interest rate, the Federal Reserve ________ the quantity of money by ________ government securities.

A) decreases; buying
B) increases; selling
C) decreases; selling
D) increases; buying
E) None of the above answers is correct because in the short run, the Federal Reserve cannot change the interest rate.