Along a short-run Phillips curve, the
A) long-run cost of lower inflation is higher unemployment.
B) short-run cost of lower unemployment is higher inflation.
C) short-run cost of lower inflation is higher interest rates.
D) short-run cost of higher inflation is a higher real interest rate.
E) short-run benefit of lower unemployment is lower inflation.
B
Economics
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According to the real-business-cycle perspective
A) the economy cannot be stabilized by policy activism. B) the Phillips curve is very important. C) passive policy making is important. D) active policy making is important.
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When equilibrium real GDP falls short of potential GDP, there is a(n)
a. inflationary gap. b. potential gap. c. recessionary gap. d. precautionary gap.
Economics