Introduction to Economics 1 Deneme Sınavı Sorusu #716215

I. The level of spending II. The level of tax collection III. The quantity of money put in circulation IV. Opportunity Cost V. Market Power What can policy makers change in order to tackle the negative tradeoff between unemployment and inflation in an economy?


I and II

I and III

II and III

I, II and III

II, IV and V


Yanıt Açıklaması:

Economic policy choices often produce similarly conflicting outcomes. Policymakers must therefore prioritize economic policy goals, or attribute different weights to desirable and undesirable outcomes from the introduction of various policies. In the case of the Phillips curve, for example, policymakers can tackle this tradeoff using various policy instruments: By changing the level of government spending or tax collection, and the quantity of money put in circulation, policymakers can, in the short run, influence the inflation and unemployment rate pairs. The correct answer is C.

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