If the government ran a major deficit, and there was no noticeable effect on the level of GDP, this could be taken as evidence of

Assume goods X and Y are complements and are produced in perfectly competitive markets. All else constant, an increase in demand for good X would cause:

A) a decrease in the number of firms that produce good X. B) an increase in the number of firms that produce good Y. C) a decrease in the number of firms that produce good Y. D) no effect on the number of firms that produce either good.

The original (1958 ) Phillips curve

A) showed that stagflation is inevitable. B) showed the tradeoff between the use of monetary and fiscal policy. C) has never been used as an important economic policy tool. D) suggested a tradeoff between wage inflation and the unemployment rate. E) none of the above