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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 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. 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.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

If, in the long run, people adjust their price expectations so that all prices and incomes move proportionately to an increase in the price level then the long-run Phillips curve ?

Economics Mcqs, The Phillips Curve /
If, in the long run, people adjust their price expectations so that all prices and incomes move proportionately to an increase in the price level then the long-run Phillips curve ?

A. is vertical
B. is negatively sloped
C. has a slope that is determined by how fast people adjust their price expectations
D. is positively sloped

If, in the long run, people adjust their price expectations so that all prices and incomes move proportionately to an increase in the price level then the long-run Phillips curve ? Read More »

Economics Mcqs, The Phillips Curve

The Phillips curve is an extension of the model of aggregate supply and aggregate demand because, in the short run, an increase in aggregate demand increase price and ?

Economics Mcqs, The Phillips Curve /
The Phillips curve is an extension of the model of aggregate supply and aggregate demand because, in the short run, an increase in aggregate demand increase price and ?

A. decreases unemployment
B. decrease growth
C. increases unemployment
D. decreases inflation

The Phillips curve is an extension of the model of aggregate supply and aggregate demand because, in the short run, an increase in aggregate demand increase price and ? Read More »

Economics Mcqs, The Phillips Curve

The misery index Which some commentators suggest measures the health of the economy, is ?

Economics Mcqs, The Phillips Curve /
The misery index Which some commentators suggest measures the health of the economy, is ?

A. The sum of the growth rate of output and the inflation rate
B. The sum of the natural rate of unemployment and the actual rate of unemployment
C. The sum of the inflation rate and the central bank’s refinancing rate
D. The sum of the unemployment rate and the inflation rate

The misery index Which some commentators suggest measures the health of the economy, is ? Read More »

Economics Mcqs, The Phillips Curve