The unemployment rate in the United States is typically lower than in Western Europe because the United States has tougher requirements for the unemployed to receive government payments

In the above figure, the economy is at point a on the initial supply of loanable funds curve SLF0. What happens if real wealth decreases?

A) Nothing; the economy would remain at point a. B) There would be a movement to a point such as b on supply of loanable funds curve SLF0. C) The supply of loanable funds curve would shift rightward to a curve such as SLF2. D) The supply of loanable funds curve would shift leftward to a curve such as SLF1.

Over the long run the Volcker disinflation

a. shifted the short-run and long-run Phillips curves left. b. shifted the short-run, but not the long-run Phillips curve left. c. shifted the long-run, but not the short-run Phillips curve left. d. None of the above is correct.