Contractionary fiscal
What will be an ideal response?
_reductions in governmentspending or transfer payments or increases in taxes, leading to alower level of economic activity
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Along a given ________ Phillips curve, a lower unemployment rate can be achieved only by paying the cost of a ________ inflation rate, and a lower inflation rate can be achieved only by paying the cost of a ________ unemployment rate
A) long-run; higher; lower B) short-run; higher; lower C) long-run; higher; higher D) short-run; lower; higher E) short-run; higher; higher
You consume only steak and lobster. Your substitution effect from a drop in the price of lobster is measured by a movement along your indifference curve between steak and lobster
Indicate whether the statement is true or false