When the natural unemployment rate ________, the short-run Phillips curve shifts ________ and the long-run Phillips curve shifts ________
A) increases; rightward; rightward
B) increases; rightward; leftward
C) decreases; rightward; rightward
D) decreases; leftward; rightward
E) increases; leftward; leftward
A
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Consumption spending is $22 million, planned investment spending is $7 million, actual investment spending is $7 million, government purchases are $9 million, and net export spending is $3 million
Based on this information, which of the following is true? A) Aggregate expenditure is equal to GDP. B) Aggregate expenditure is greater than GDP. C) Aggregate expenditure is less than GDP. D) There was an unplanned change in inventories.
After a hurricane in Florida knocked out the regional water supply for several days, the demand for bottled water increased sharply. In a market economy, how will this increase in demand affect the equilibrium price and quantity of bottled water?
a. Price will increase, and quantity will decrease. b. Price will decrease, and quantity will decrease. c. Price will decrease, and quantity will increase. d. Price will increase, and quantity will increase.