Suppose that money supply growth increases. In the long run, this increases employment according to
a. both the long-run Phillips curve and the aggregate demand and aggregate supply model.
b. neither the long-run Phillips curve nor the aggregate demand and aggregate supply model.
c. the long-run Phillips curve, but not the aggregate demand and aggregate supply model.
d. the aggregate demand and aggregate supply model, but not the long-run Phillips curve
b
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In response to an increase in technology, we would expect
a. both the short run and long run Phillips curve to shift to the right. b. both the short run and long run Phillips curve to shift to the left. c. the long run Phillips curve remains unchanged while the short run Phillips curve shifts to the right. d. the short run Phillips curve remains unchanged while the long run Phillips curve shifts to the right. e. none of the above.
An inferior good has a ________ income elasticity of demand and quantity demanded ________ as income rises
A) negative; increases B) negative; decreases C) positive; increases D) positive; decreases