Author: Anonymous

Variable inflation has higher costs than stable inflation with the same average.

The United States should be required to balance the structural federal budget. (Recall that balancing the structural deficit permits a cyclical budget deficit. This question is not about the cyclical deficit.)

Free junior college tuition fees in the United States is a cost-effective way to increase college enrollment. (Background: Tuition and fees are already low for public junior colleges in the U.S., but there is still positive.)

Free trade hurts American workers, but helps workers in low-wage nations.

     Referring to the above exhibit, the short-run Phillips curve shifts from A (at the top) to D (at the bottom) from [Check all that apply]

The long-term fiscal problems of most industrialized nations are primarily due to: [Select all that apply]

The multiplier on government expenditures is smaller if some portion of increases in income increase imports (that is, reduce next exports, NX). 

Assume adaptive expectations. To end an inflation, a central bank should [Check all that apply]

In a small open economy with a fixed exchange rate and mobile capital, an effective policy to increase equilibrium output during a recession is to [Select all that apply]

If the European Central bank cuts long-term interest rates in the Eurozone, then the United States will be better off.