Suppose the central bank pursues an unexpectedly tight monetary policy. In the short-run the effects of this are shown by

a. moving to the left along the short-run Phillips curve.
b. moving to the right along the short-run Phillips curve.
c. shifting the short-run Phillips curve to the right.
d. shifting the short-run Phillips curve to the left.

b

Economics

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A market failure occurs when

A) price equals marginal cost. B) there is a non-optimal allocation that leads to an inefficient market. C) deadweight loss is maximized. D) a firm shuts down.

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Crowding out is a decrease in private investment caused by:

A. Increased taxation by the government B. Increased borrowing by the government C. Increased consumer spending by households D. Increased exports to buyers in other nations

Economics