In the events of an increase in the international price of oil that encouraged the central bank to accept lower real interest rates, inflation would most likely ? A. fallB. increase C. remain the same D. fluctuates
The Keynesian model is a good guide to ____ behavior and the classical model describes behavior in ______? A. long run, short run B. flexible imperfect marketsC. short-term long run D. long run, imperfect markets
The equilibrium inflation rate is determined by the intersection of _____ and _____? A. demand, supply B. IS, LMC. AD, AS D. Labor demand, labor supply
If a person thinks they are better off after a 10% wage increase, and all prices have risen 10% then they are experiencing ? A. inflation B. a supply shock C. crowding outD. inflation illusion
The classical model of macroeconomics assumes ? A. wages and prices are sticky B. wages and prices are flexible C. the economy may operate below full capacity D. the economy is always at full capacity E. A and CF. B…
Even though explicit contracts may lead to layoffs during recessions explicit contracts may still be efficient because such contracts ? A. minimize negotiation costs B. minimize unemployment effects C. guarantee that only the least productive workers will be laid off.…
An unspoken agreement between workers and firms that the firm will not cut wages is known as ? A. an implicit or social contract B. a relative-wage contract C. employment at will D. an explicit contract
The expectations augmented Phillips curve was the Work of which group of economists ? A. New classical economists B. Keynesian.C. Monetarists D. Marxists.
The view of the Phillips curve that prevailed in the 1960s implied that policies that ? A. lower unemployment rate will tend to lower the inflation rateB. lower unemployment rate will tend to raise the inflation rate C. raise inflation…
The Phillips curve is a graph showing the relationship between ? A. the price level and the unemployment rateB. the inflation rate and the unemployment rate C. the level of aggregate output and the price level D. the inflation rate…