For the short-run Phillips curve to remain relatively stable, then changes in real GDP must occur primarily as a result of shifts in:
a. changes in aggregate demand
b. changes in real wages caused by changes in the supply of labor.
c. changes in inflationary expectations.
d. changes in aggregate supply.
a
Economics
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What economic variables would you need to consider in order to distinguish between a developing country with a short-term balance of payments problem and one in a debt crisis? Explain what data you would need to look at and why
What will be an ideal response?
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If the marginal propensity to consume is equal to 0.70 and income rises by $20 billion in an economy, then consumption spending will increase by: a. $6 billion
b. $14 billion. c. $20 billion. d. $28 billion. e. $67 billion.
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