Along a short-run Phillips curve, the
A) long-run cost of lower inflation is higher unemployment.
B) short-run cost of lower unemployment is higher inflation.
C) short-run cost of lower inflation is higher interest rates.
D) short-run cost of higher inflation is a higher real interest rate.
E) short-run benefit of lower unemployment is lower inflation.
Question 2
A decrease in expected future income leads to a
A) leftward shift of the supply of loanable funds curve.
B) leftward shift of the demand for loanable funds curve.
C) rightward shift of the demand for loanable funds curve.
D) downward movement along the supply of loanable funds curve.
E) rightward shift of the supply of loanable funds curve.
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