In the last half of the 1990s, the usual short-run trade-off between inflation and unemployment did not arise because:
A. the Fed held interest rates constant.
B. the federal government balanced its budget.
C. the U.S. personal savings rate rose.
D. productivity (and thus aggregate supply) grew faster than previously.
D. productivity (and thus aggregate supply) grew faster than previously.
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The structure of the Social Security system is particularly advantageous to
a. blacks. b. those with life shortening diseases such as diabetes. c. groups with below average earnings and above average life expectancy. d. groups with above average earnings and below average life expectancy.
When demand increases in a perfectly competitive market, in the short run ________, and in the long run ________.
A. quantity supplied increases; prices increase B. quantity supplied decreases; prices decrease C. prices increase; supply increases D. prices increase; prices stay permanently higher