The Economy Will Move to a Point on the Short-Run

question 171

Multiple Choice

The economy will move to a point on the short-run Phillips curve where unemployment is higher if

• A)the inflation rate decreases.
• B)the government increases its expenditures.
• C)the Fed increases the money supply.
• D)the government decreases taxes.

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Definitions:

International Trade

The movement of goods and services across the demarcations of international borders or territories.

Benefit All

A principle or approach aimed at ensuring policies or actions lead to positive outcomes for the entire population or group involved, not just a select few.

Citizens

Members of a particular nation or state who are recognized under the law as legal members of that nation, entitled to rights and subject to its obligations.

Specialization

Concentrating on a narrow area of expertise or production to increase efficiency and output.