Foundations of Economics (8th Edition)
Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 31, Problem 5MCQ
To determine

To find:

The change in the short-run Phillips curve and the long-run Phillips curve when there is a decrease in the natural unemployment rate.

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Moving along the short-run Phillips curve, if ________ increases, then ________ decreases. unemployment; the expected inflation rate unemployment; the price level inflation; the price level inflation; real GDP inflation; unemployment   According to Okun's Law, when the natural employment rate is 6 percent and potential GDP is $10 trillion, then when actual employment is 7 percent, real GDP is $9.8 trillion. $10.1 trillion. $10.2 trillion. $9.9 trillion. $8 trillion.   The long-run Phillips curve shows the relationship between inflation and interest rates at full employment. aggregate demand and aggregate supply at full employment. inflation and unemployment at full employment. aggregate demand and interest rates at full employment. the price level and real GDP when the economy is not at full employment.   If the expected inflation rate changes, the long-run Phillips curve ________, and the short-run Phillips curve ________. does not shift; does not…
19) The occurrence of financial crowding out implies that: Short-run fiscal expansion increases the size of the public sector Long-run growth is adversely affected by public spending Domestic banks benefit at the expense of foreign banks The long-run Phillips curve is vertical   Which of the following statements are true? Only Statement (1) is correct Statements (1) and (3) are correct (3) Statements (1) and (2) are correct (4) Statements (2) and (4) are correct
Question 28 A decrease in expected inflation will have what effect on the Phillips Curve? O The short-run Phillips Curve will shift up. O The short-run Phillips Curve will shift down. The long-run Phillips Curve will shift in. O The long-run Phillips Curve will shift out.
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