Suppose oil prices suddenly begin to rise and the Fed announces that the increase in oil prices are not expected to generate excessive inflation
If the Fed is incorrect in its assumption that rising oil prices will not generate excessive inflation and the inflation rate increases before the Fed takes corrective action, then other things equal, this would result in ________ and ________. A) the IS curve shifting to the right; a movement up the Phillips curve
B) the IS curve shifting to the left; a movement down the Phillips curve
C) the MP curve shifting up; a movement up the Phillips curve
D) the MP curve shifting down; a movement down the Phillips curve
A
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Suppose the supply of product X is perfectly inelastic. If there is an increase in the demand for this product, equilibrium price:
A. will decrease but equilibrium quantity will increase. B. and quantity will both decrease. C. will increase, but equilibrium quantity will decline. D. will increase, but equilibrium quantity will be unchanged.
Discuss the political pressures associated with fiscal policy
Please provide the best answer for the statement.