Author Question: Structures in the economy increase aggregate demand when the economy is in recession and decrease ... (Read 127 times)

silviawilliams41 · **on:** Jun 30, 2018

Structures in the economy increase aggregate demand when the economy is in recession and decrease aggregate demand when the economy is inflationary are known as:
a. tax transfers.
b. inventory investment.
c. accelerators.
d. depreciation.
e. automatic stabilizers.

Question 2

Which of the following correctly describes the Phillips curve?
a. A curve showing the inverse relationship between interest rates and the quantity of money demanded.
b. A curve showing the direct relationship between interest rates and the quantity of money demanded.
c. A curve showing the direct relationship between the inflation rate and the unemployment rate.
d. A curve showing the inverse relationship between the inflation rate and the unemployment rate.