In the short run, an increase in inflation by the Fed not matched by an increase in the expected inflation rate results in ________ in the long-run Phillips curve and ________ in the short-run Phillips curve
A) no change; a downward shift
B) a rightward shift; an upward shift
C) a rightward shift; a downward shift
D) no change; no change
E) a leftward shift; an upward shift
D
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Suppose the government has a $375 billion budget deficit. If the government creates $225 billion of new money to finance this deficit and finances the rest by borrowing, the amount borrowed from the public will be
A) $150 billion. B) $225 billion. C) $375 billion. D) $600 billion.
In the legal sector, some practice areas have declined in recent years
For example, personal-injury and medical-malpractice cases have been undercut by state laws limiting class-action suits, out-of-state plaintiffs, and payouts on damages, and securities class-action litigation has declined in part because of a buoyant stock market. How does this affect the market for lawyers? A) The quantity of lawyers demanded decreases and this is represented by a movement along the demand curve. B) The supply of lawyers shifts to the left. C) The demand for lawyers shifts to the left. D) Both the demand and supply curves decrease.