Phillips Curve
What does the Phillips curve shows the relationship between?
What is inflation and unemployment?
What does crowding out refer to the decrease in?
What is the decrease in private investment due to increased borrowing by the government?
What could the central bank do to prevent more inflation and keep interest rates stable?
What is the central bank could lower the money supply by selling bonds?
What’s the trade-off of increasing government spending without raising taxes to close a recessionary gap?
What is Deficit Spending?
What increases human capital prominently?
What is education training/spending?
On the short run Phillips curve, what happens when stagflation occurs?
What is an increase in unemployment and inflation?
What increases as the government budget deficit increases?
What is the real interest rate?
What will definitely occur if there is a decrease in aggregate supply followed by an increase in aggregate demand?
What is the price level will increase?
What occurs when annual government spending and transfer payments are greater than tax revenue?
What is a budget deficit?
What increases physcial capital prominently?
What are infrastructure spending & production/investment incentive programs?
If inflation expectations rise, the short-run Phillips curve shifts
What is right,so that at any inflation rate unemployment is higher in the short run than before.
What model would be used to show the impact of government deficit spending on the real interest rate?
What is the market for loanable funds?
What combination of fiscal/monetary policy can correct a recession?
What is decreasing income tax rates and increasing money supply?
What occurs when annual government spending and transfer payments are less than tax revenue?
What is a Budget Surplus?
What is government policies designed to increase production by reducing business taxes and/or regulations?
What is supply-side fiscal policy?
What is movement along the short runs Phillips curve?
Which of the following best describes what will most likely happen as a result of the expansionary fiscal policy?
What combination of monetary/fiscal policy actions will reduce unemployment?
What is buying government bonds and decreasing taxes?
What happens when the government increases spending without increasing taxes?
What is an increase in annual deficit and national debt?
What will likely happen in the long-run if there is an increase in social services?
What is an increase in wages and costs in the long run?
If there is a favorable supply shock what will happen to the Phillips curve?
What is the short-run aggregate supply curve shifts right and the short-run Phillips curve shifts left.
Which of the following best describes the chain of events in the relationship between deficits and potential output?
What is: Deficit → higher real interest rates → less private investment → smaller capital stock → slower growth of potential output
When a central bank sells securities in the open market, what g set of events is most likely to follow?
What is a decrease in the money supply, an increase in interest rates, and a decrease in aggregate demand?
What occurs when a federal program requires payments to any eligible person or unit of government?
What are entitlements?
What are some the reasons supply side fiscal policy is controversial?
What is tax breaks only help wealthy, and assumes companies will spend on investment?