A vocal minority of economists, believers in the theory of rational expectations, insist that
a. the Phillips curve is downward sloping even in the short run.
b. the Phillips curve is vertical even in the short run.
c. a trade-off exists between inflation and unemployment even in the long run.
d. expansionary fiscal and monetary policy can reduce unemployment without creating inflation.
b
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If the number of automobile manufacturers decreases
A) the supply of automobiles increases. B) the demand for automobiles increases. C) the demand for automobiles decreases. D) the supply of automobiles decreases.
Which of the following does NOT describe the relationship between banks and small business during the 2000s (prior to the financial crisis)?
A) Banks typically applied fixed guidelines for granting loans, leaving little room for personal judgment. B) Fewer small businesses received loans as banks shifted their focus to mortgages. C) Many small businesses were receiving loans from regional and national banks. D) More banks became convinced that it would be profitable to loosen their loan guidelines to make more borrowers eligible to receive credit.