Refer to Figure 17-4. Consider the shift in the short-run Phillips curves shown in the above graph. This shift may be explained by A an increase in the natural rate of unemployment from 5.0 to 6.2 percent. B an increase in the expected rate of inflation from 4.0 to 5.5 percent. C D either an increase in the natural rate of unemployment from 5.0 to 6.2 percent or an increase in the expected rate of inflation from 4.0 to 5.5 percent. None of these is correct.
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- Figure 17-2 Inflation rate (percent per year) 5.5% 3 1 0 B Long-run Phillips curve A 3.8% 5 6 Short-run Phillips curve Unemployment rate (percent)Figure 17-5 Inflation rate (percent per year) 10% 5 0 Long-run Phillips curve 5.5% 7.5 Short-run Phillips curve Unemployment rate (percent)What are two possible negative outcomes of the increased inflation to 7.3% currently in Australia? don't provide plagiarism a
- Inflation rate (percent per year) C Unemployment rate (percent) Refer to Figure 17-8, A typical long-run Phillips curve would have the appearance of a curve running through points A and B. A and C. B and C. A, B, and C.Which statement best describes U.S. inflation between 1982 and 2000? A. It was virtually nonexistent. It was consistently high, often climbing into the double digits. B. It was widely variable, swinging from zero to over 10%. C. It was neither very high nor very low.In the short-run you know that firms and households expect inflation of 3.6% next year. There are no supply shocks and cyclical unemployment is 1.09%. Lambda is 0.5. With this information, what is the inflation rate today? Write your answer as a percentage, round at one (1) decimal, and do not write the percentage sign. Use a minus sign if needed.
- c) Define inflation and its measurement. What is the current environment in the USAHow to measure core inflation? How is it estimated?Which of the following does NOT accurately describe inflation rates? Question 3Answer a. They can be positive, negative or equal to zero b. They can be derived from Consumer Price Index c. They capture the persistent changes in the general price levels d. They magnify the values of real GDP
- If the price level increased from 120 to 142, then what was the inflation rate? 1.2 percent 0.8 percent 18.3 percent 22.0 percent> 325 Question 10 A rise in wages would raise cost of production and hence leads to A) a fall in the price level. B) demand-pull inflation C) no changes in the price level. D cost-push inflation Question 11 1080 100 e di OT nSuppose that people expect inflation to equal 5 percent, but in fact, prices rise by 7 percent. Which of the following groups or individuals are hurt by this unexpectedly high inflation rate? Check all that apply. The government A union worker in the second year of a labor contract A homeowner with a fixed-rate mortgage A college that has invested some of its endowment in government bonds that are not indexed Treasury bonds