Assume that the unemployment rate rises. What is the impact on the short run Phillipscurve?O It will shift up.O There will be movement along the curve to the left.O There will be movement along the curve to the right.OIt will shift down.Show Transcribed TextThe following equations describes an economy:Y=C+I+G+ NXC = 250 +0.7*(1-t)Yt = 0.21 = 300G = 60NX = 40Which of the following statements is true?O If exports increase by 10, equilibrium Y will increase by 33.O Without any changes, the equilibrium level of Y is 2167.O If government spending increases by 40, equilibrium Y will increase by 46.51.The value of the government spending multiplier is 2.27.Show Transcribed Text

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Assume that the unemployment rate rises. What is the impact on the short run Phillips curve? It will shift up. There will be movement along the curve to the left. O There will be movement along the curve to the right. O It will shift down. Show Transcribed Text

Assume that the unemployment rate rises. What is the impact on the short run Phillips curve? It will shift up. There will be movement along the curve to the left. O There will be movement along the curve to the right. O It will shift down. Show Transcribed Text

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter21: Unemployment

Section: Chapter Questions

Problem 41CTQ: Unemployment rates have been higher in many European countries in recent decades than in the United...

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Question

Assume that the unemployment rate rises. What is the impact on the short run Phillips
curve?
O It will shift up.
O There will be movement along the curve to the left.
O There will be movement along the curve to the right.
OIt will shift down.
Show Transcribed Text
The following equations describes an economy:
Y=C+I+G+ NX
C = 250 +0.7*(1-t)Y
t = 0.2
1 = 300
G = 60
NX = 40
Which of the following statements is true?
O If exports increase by 10, equilibrium Y will increase by 33.
O Without any changes, the equilibrium level of Y is 2167.
O If government spending increases by 40, equilibrium Y will increase by 46.51.
The value of the government spending multiplier is 2.27.
Show Transcribed Text

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