If inflation expectations rise, the short-run Phillips curve shifts
a. right, so that at any unemployment rate inflation is higher in the short run than before.
b. left, so that at any unemployment rate inflation is higher in the short run the before.
c. right, so that at any unemployment rate inflation is lower in the short run than before.
d. left, so that at any unemployment rate inflation is lower in the short run than before.
a
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Let C = 200 + .8(Y-T), planned investment equals 150, and T equals 200 . If the equilibrium level of income is 2,000, then the level of government spending needed to make this true is
a. 210. b. 250. c. 50. d. 10. e. none of the above.
Suppose a jar of orange marmalade that is ultimately sold to a customer at The Corner Store is produced by the following production process: Name of CompanyRevenuesCost of Purchased InputsCitrus Growers Inc.$0.750Florida Jam Company$2.00$0.75The Corner Store$2.50$2.00 What is the sum of the value added of all the firms?
A. $2.75 B. $4.50 C. $5.25 D. $2.50