How is a decrease in the natural rate of unemployment shown in the Phillips curve diagram? Does this decrease change the inflation rate?
Both the long-run and the short-run Phillips curves shift left. There is no change in the inflation rate.
Economics
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Exports of U.S. goods create a ________ U.S. dollars and create a ________ foreign currencies
A) demand for; demand for. B) supply of; supply of C) demand for; supply of D) supply of; demand for
Economics
When the Fed allows the monetary base to respond to the purchase or sale of domestic currency in the foreign exchange market, the process is called
A) open market operations. B) hedging. C) sterilized intervention. D) unsterilized intervention.
Economics