chapter 35 quiz

chapter 35 quiz - 1.Anadverseaggregatesupplyshock:

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1.  An adverse aggregate supply shock: A) automatically shifts the aggregate demand curve rightward. B) causes the Phillips Curve to shift leftward and downward. C) can be caused by a boost in the rate of growth of productivity. D) can cause stagflation. 2.  Inflation accompanied by falling real output and employment is known as: A) Laffer's law. B) Okun's law. C) stagflation. D) the Phillips Curve. 3.      Refer to the above diagram. Point b on short-run Phillips Curve PC 1  represents a rate of: A) inflation below the natural rate. B) inflation above the natural rate. C) unemployment above the natural rate. D) unemployment below the natural rate. 4.   Refer to the table above. If the current tax rate is 60 percent, supply-side economists  would advocate:
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A) lowering tax rates to 20 percent, or lower if possible. B) lowering tax rates to 40 percent.
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This note was uploaded on 03/29/2010 for the course ECON 112 taught by Professor Smith during the Spring '10 term at Bowling Green.

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chapter 35 quiz - 1.Anadverseaggregatesupplyshock:

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