With the presence of a short-run trade-off between inflation and unemployment, changes in international conditions that caused domestic aggregate demand to increase at every price level,
A) prices and GDP would climb.
B) prices would climb and GDP would fall.
C) prices would climb but GDP would remain below its potential.
D) prices would fall and GDP would remain at its potential.
E) prices would climb to maintain GDP at its potential.
Correct Answer:
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Q3: Since 1966 in the United States, there
Q4: Interest rates in the United States have
A)
Q5: Roughly defined, the unemployment rate is
A) the
Q6: Potential GDP is a measure of
A) all
Q7: Which of the following is not discussed
Q9: The term rational expectations is most accurately
Q10: The recession experienced in the United States
Q11: The real money supply
A) tends to grow
Q12: Let a price index increase from 136.2
Q13: When an economy turns into a recession
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