A The short run Phillips curve will shift to the right B The economy will move

A the short run phillips curve will shift to the

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20) ______ A) The short-run Phillips curve will shift to the right. B) The economy will move from Cto A. C) Workers and firms expect inflation to be 1%. D) The short-run Phillips curve will shift to the left. E) The natural rate of unemployment is 6%. 21) If the number of unemployed workers is 19 million, the number in the working-age population is 500 million, and the unemployment rate is 4%, how many workers are in the labor force? 21) ______ 22) If a person withdraws $500 from his/her checking account and holds it as currency, then M1 will ________ and M2 will ________. 22) ______
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ECON104 Final Exam TIERNEY © 2014 8 Figure 15-1023) Refer to Figure 15-10. In the figure above, suppose the economy is initially at point A. The movement of the economy to point Bas shown in the graph illustrates the effect of which of the following policy actions by the Federal Reserve? 23) ______ 24) A decrease in the demand for eggs due to changes in consumer tastes, accompanied by a decrease in the supply of eggs as a result of an outbreak of Avian flu, will result in 24) ______ A) a decrease in the equilibrium price of eggs and no change in the equilibrium quantity. B) a decrease in the equilibrium price of eggs; the equilibrium quantity may increase or decrease. C) a decrease in the equilibrium quantity of eggs; the equilibrium price may increase or decrease. D) a decrease in the equilibrium quantity of eggs and no change in the equilibrium price.
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ECON104 Final Exam TIERNEY © 2014 9 Figure 11-125) Refer to Figure 11-1. Within a country, the impact of wars and revolutions and their subsequent destruction of capital is reflected in the per-worker production function in the figure above by a movement from 25) ______ A. 26) Refer to Figure 11-1. Diminishing marginal returns is illustrated in the per-worker production function in the figure above by a movement from 26) ______ B) Bto C. C) Cto D. D) Ato C. 27) Refer to Figure 11-1. Technological change is illustrated in the per-worker production function in the figure above by a movement from
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