Which of the following does the long-run Phillips curve tell us?
a. That the Fed can select any rate of unemployment it wants in the long run
b. That the Fed can select any rate of inflation and unemployment rate it wants in the long run
c. That the Fed can select neither the rate of inflation nor the rate of unemployment in the long run
d. That there is a tradeoff between the rate of inflation and the rate of unemployment in the long run
e. That the Fed can select any rate of inflation it wants in the long run
E
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Which of the following influences the slope of the LM curve?
A) The interest-sensitivity of money demand B) The interest-sensitivity of investment C) The interest-sensitivity of government spending D) The interest-sensitivity of saving
If the government spends less than what it receives in taxes during a given interval, then the result is
A) a balanced budget. B) an entitlement. C) unrealized public debt. D) a government budget surplus.