We would be most likely to experience a shift from one Phillips curve to another if the government attempts to
a. reduce the unemployment rate and workers, fearing inflation, react by bargaining for higher wages
b. reduce the unemployment rate and consumers, fearing higher taxes, cut their spending
c. reduce the unemployment rate and firms hire more employees without having to raise wage rates
d. reduce the unemployment rate and the inflation rate simultaneously
e. reduce the inflation rate and firms respond by making no employment changes
A
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If the current account balance shows a surplus, and the capital account also shows a surplus, then the official reserve transactions balance
A) must be positive. B) must be negative. C) must be zero. D) can either be positive, negative, or zero.
Overcrowding under public school choice is not a problem because _____
a. parents find crowded schools undesirable b. parents do not mind sending their kids to schools far away from home c. schools have the ability to drastically expand capacity in the short-run d. schools will be extremely exclusionary