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Question: What would you recommend as an advisor to the President during times when employment is steady, stock market returns are positive, and the general price level is increasing? Question 18 options: Decrease Taxes Increase Taxes Increase Transfer Payments Decrease Spending Decrease Transfer Payment Increase Government Spending
The United States decreases taxes, but only on a limited amount of people. How will this affect either the: Long Run Phillips Curve, or Short Run Phillips Curve. Question 17 options: Long Run Phillips Curve Shifts Right. Long Run Phillips Curve Shifts Left. Movement along the Short Run Phillips Curve up and left. Movement along the Short Run Phillips Curve down and right. Short Run Phillips Curve Shifts Right Short Run Phillips Curve Shifts Left
As an AI, I can provide an analysis based on available options. In a period of steady employment, positive stock market returns, and increasing general price level (which could indicate inflation), I would recommend to "Increase Taxes". This strategy could accomplish two things: one, it could help moderate the inflation by reducing disposable income and thus, the aggregate demand; and two, it could ensure additional government revenue to address any potential future economic downturns or to pay down public debt. It's always important to remember that applying these strategies should be balanced and conditional to other economic factors and overall financial situation. Please note, this is a general approach and may not apply in all contexts. The best solution always depends on specific economic conditions and circumstances. Also, professional economists and financial advisors may offer more insight and give tailored advice.
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