37. If both the unemployment rate and the inflation rate decrease, you predict that ________.(A) the expected inflation rate has increased(B) the natural unemployment rate has decreased(C)the economy has moved along its short-run Phillips curve(D) the natural unemployment rate has increased

39. "European Economic Recovery Plan""The European Commission urged EU governments to jointly combat the economic slowdown with 200 billion euros ($256 billion) in spending and tax cuts to boost growth and consumer and business confidence. " The plan "...would see the 27 EU governments spend 1.5 percent of the bloc's gross domestic product to halt the slowdown that has already pushed some European nations into recession."www.iht.com, 11/26/2008The plan is expected to(A) shift the AD curve rightward and increase real GDP.(B) shift the AD curve leftward and decrease the recessionary gap.(C)decrease the recessionary gap and decrease the price level.(D) use the autonomous tax multiplier to eliminate the inflationary gap.

37. If both the unemployment rate and the inflation rate decrease, you predict that ________.
(A) the expected inflation rate has increased
(B) the natural unemployment rate has decreased
(C)the economy has moved along its short-run Phillips curve
(D) the natural unemployment rate has increased

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