In the figure above, the shift from the short-run Phillips curve SRPC0 and the long-run Phillips curve LRPC0 to the short-run Phillips curve SRPC2 and the long-run Phillips curve LRPC2 is the result of ________ in the expected inflation rate and
________ in the natural unemployment rate.
A) a decrease; a decrease
B) an increase; an increase
C) no change; a decrease
D) an increase; no change
E) a decrease; an increase
C
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Markets can fail to achieve efficiency when
a. there are prices consumers do not think are fair. b. there are wages workers do not think are fair. c. trade puts people out of work. d. there are buyers or sellers without adequate information about the quality of goods.
Which of the following types of government spending is included in the calculation of GDP?
A. Federal, state, and local government spending for any purpose. B. Federal spending only. C. Federal, state, and local spending on transfer payments only. D. Federal, state, and local government spending on goods and services only.