Suppose the Phillips curve is correct. If the government increases taxes, then aggregate demand decreases and...

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Economics

Suppose the Phillips curve is correct. If the governmentincreases taxes, then aggregate demand decreases and unemploymentfalls in the short run
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True
False
According to the long-run Phillips curve, in the long run,unemployment depends upon factors such as fiscal and monetarypolicies that are designed to reduce cyclical unemployment.
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True
False
Proponents of rational expectations argued that if peopleexpected a decrease in the money supply growth rate and inflation,then the decrease in the money growth would have little or noaffect on output in the short-run.
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True
False
The long-run and short-run Phillips curves intersect whereexpected inflation intersects actual inflation.
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True
False
The short-run relationship between inflation and unemployment isoften called the Phillips curve and it reflects a negativerelationship between the two economic variables.
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True
False

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Q Suppose the Phillips curve is correct If the government increases taxes then aggregate demand decreases and unemployment falls in the short run Answer False Q According to See Answer

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