The short-run Phillips curve illustrates ________ relationship between the unemployment rate and the inflation rate

The economic way of thinking is

A) a biased perspective at the present time, and we should eliminate bias from economics. B) a biased perspective, but the existence of bias does not mean the discipline should be condemned. C) biased only when it is used to argue for particular policies. D) unbiased because economics is a science. E) unbiased insofar as its conclusions are drawn exclusively from actual facts.

In a two-period model, holding everything else constant, an increase in government spending

A) unambiguously increases the current account surplus. B) unambiguously decreases the current account surplus. C) has an uncertain effect on the current account surplus. D) has no effect on the current account surplus.