In the short run, an increase in the money stock growth rate
a. moves the economy up the short-run Phillips curve.
b. moves the economy down the short-run Phillips curve.
c. shifts the short-run Phillips curve to the right.
d. results in a decline in the natural rate of unemployment and a rise in the inflation rate.
e. both b and d are correct.
B
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In the formula used to measure the growth rate of multifactor productivity, the contribution of labor is represented by
A) bn. B) bk - bn. C) y - bk. D) (1 - b)n.
People make mistakes in allocating their time
a. only when leisure time is an inferior good b. because expectations are not always fulfilled c. more often when the cost of making a mistake is high d. only when economists remove the assumption that individuals are rational e. because information is free and readily available