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Economics Mcqs

Along a short-run Phillips curve, ?

Economics Mcqs, The Phillips Curve /
Along a short-run Phillips curve, ?

A. a higher rate of inflation is associated with a lower unemployment rate
B. a higher rate of growth in output is associated with a lower unemployment rate
C. a higher rate of inflation is associated with a higher unemployment rate
D. a higher rate of growth in output is associated with a higher unemployment rate.

Along a short-run Phillips curve, ? Read More »

Economics Mcqs, The Phillips Curve

If a country’s policy makers were to continuously use expansionary monetary policy in an attempt to hold unemployment below the natural rate the long-run result would be ?

Economics Mcqs, The Phillips Curve /
If a country’s policy makers were to continuously use expansionary monetary policy in an attempt to hold unemployment below the natural rate the long-run result would be ?

A. an increase in the level of output
B. a decrease in the unemployment rate
C. an increase in the rate of inflation
D. All of these answers

If a country’s policy makers were to continuously use expansionary monetary policy in an attempt to hold unemployment below the natural rate the long-run result would be ? Read More »

Economics Mcqs, The Phillips Curve

If the sacrifice ratio is five, a reduction in inflation from 7 percent to 3 percent would require ?

Economics Mcqs, The Phillips Curve /
If the sacrifice ratio is five, a reduction in inflation from 7 percent to 3 percent would require ?

A. a reduction in output of 20 percent
B. a reduction in output of 5percent
C. a reduction in output of 15 percent
D. a reduction in output of 35 percent

If the sacrifice ratio is five, a reduction in inflation from 7 percent to 3 percent would require ? Read More »

Economics Mcqs, The Phillips Curve

Refer to Exhibit 6. Suppose the economy is Operating in long-run equilibrium at point E. In the long run a monetary contraction will move the economy in the direction of point ?

Economics Mcqs, The Phillips Curve /
Refer to Exhibit 6. Suppose the economy is Operating in long-run equilibrium at point E. In the long run a monetary contraction will move the economy in the direction of point ?

A. F
B. a
C. H
D. I

Refer to Exhibit 6. Suppose the economy is Operating in long-run equilibrium at point E. In the long run a monetary contraction will move the economy in the direction of point ? Read More »

Economics Mcqs, The Phillips Curve

Refer to Exhibit 6. Suppose the economy is operating at point (D) As people revise their price expectations ?

Economics Mcqs, The Phillips Curve /
Refer to Exhibit 6. Suppose the economy is operating at point (D) As people revise their price expectations ?

A. The short-run Phillips curve will shift in the direction of the short-run Phillips curve associated with an expectation of 3 percent inflation
B. The short-run Phillips curve will shift in the direction of the short-run Phillips curve associated with an expectation of 9 per cent inflation
C. The short-run Phillips curve will shift in the direction of the short-run Phillips curve associated with an expectation of 6 percent inflation
D. The long-run Phillips curve will shift to the left

Refer to Exhibit 6. Suppose the economy is operating at point (D) As people revise their price expectations ? Read More »

Economics Mcqs, The Phillips Curve

Refer to Exhibit 6.If People in the economy expect inflation to be 6 percent but inflation turn out to be 3 percent the economy is operating at point ?

Economics Mcqs, The Phillips Curve /
Refer to Exhibit 6.If People in the economy expect inflation to be 6 percent but inflation turn out to be 3 percent the economy is operating at point ?

A. H
B. c
C. d
D. F

Refer to Exhibit 6.If People in the economy expect inflation to be 6 percent but inflation turn out to be 3 percent the economy is operating at point ? Read More »

Economics Mcqs, The Phillips Curve

An increase in expected inflation ?

Economics Mcqs, The Phillips Curve /
An increase in expected inflation ?

A. shifts the short run Phillips curve downward and the unemployment inflation trade-off is less favorable.
B. shifts the short-run Phillips curve upward and the unemployment inflation trade-off is more favorable
C. Shift the short-run Phillips curve downward and the unemployment inflation trade-off is more favorable
D. Shifts the Short run Phillips curve upward and the unemployment inflation trade-off is less favorable

An increase in expected inflation ? Read More »

Economics Mcqs, The Phillips Curve