Refer to Figure 28-2. Suppose the Fed used expansionary policy to push short-run equilibrium to point B. If the short-run equilibrium remained at point B long enough
A) the short-run Phillips curve would shift down.
B) the short-run Phillips curve would shift up.
C) the economy would stay at point B in the long run.
D) the economy would move back to point A.
B
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Everything else being equal, a job in which workers face a relatively small chance of being laid off would generally have
a. a lower wage rate b. a higher wage rate c. more fringe benefits d. higher skill requirements e. no expected wage differentials in equilibrium
If a U.S. company buys an electrical generator made in Japan by a Japanese firm, and the Japanese firm uses the payment to buy stocks issued by a U.S. company then
a. U.S. exports and U.S imports increase. b. U.S. exports but not U.S. imports increase. c. U.S. imports but not U.S. exports increase. d. neither U.S. exports nor U.S. imports increase.