Refer to Exhibit 6.If People in the economy expect inflation to be 3 percent and inflation is 3 percent the economy is operating at point ?
A. b
B. I
C. a
D. H
A decrease the Price of foreign oil ?
A decrease the Price of foreign oil ?
A. Shifts the short-run Phillips curve downward and make the unemployment inflation trade-off less favorable
B. Shifts the short run Phillips curve upward and makes the unemployment inflation trade-off more favorable
C. Shifts the short run Phillips curve upward and makes the Unemployment inflation trade off more favorable
D. Shifts the short run Phillips curve downward and makes the unemployment inflation trade off more favorable
Which of the following would shift the long-run Phillips curve to the right ?
Which of the following would shift the long-run Phillips curve to the right ?
A. An increase in the minimum wage
B. An increase in the expected inflation
C. An increase in the price of foreign oil
D. An increase in the aggregate demand
According to the Phillips curve, in the short run, if policy makers choose an expansionary policy to lower the rate of unemployment ?
According to the Phillips curve, in the short run, if policy makers choose an expansionary policy to lower the rate of unemployment ?
A. The economy will experience an increase in inflation
B. The economy will experience a decrease in inflation
C. Inflation will be unaffected if price expectations are unchanging
D. None of these answers
Along a short-run 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.
The original Phillips curve illustrates ?
The original Phillips curve illustrates ?
A. the trade-off between inflation and unemployment
B. The trade-off between output and unemployment
C. The positive relationship between output and unemployment
D. The positive relationship between inflation and unemployment
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 ?
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 the sacrifice ratio is five, a reduction in inflation from 7 percent to 3 percent would require ?
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
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 ?
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 at point (D) As people revise their price expectations ?
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