Question

Tuestion Completion Status: From the list on your right select the letter that contains the word, please, name, etc that best matches the word, phrase, name, etc listed on the left. A Explains why SRAS is upward sloping B. Nominal GDP C. Unemployed D. AD declines, SRAS remains unchanged, both price and output decline E. Full employment if cyclical unemployment is equal to zero F. Is hurt by deflation G. Focuses on the short-run An economy with a combined structural and frictional unemployment rate of 3 H. Underemployed - Not in the labor force A new mother who resigns from her job as a chief economist of a major bank to care for her baby full time A lender of funds A measure of inflation in the prices of all final goods and services produced within the borders of a country Sticky wages Consumers are pessimist about the future Classical view Keynesian view - During recessionary and inflationary times, the economy adjusts to full employment level on its own K. The Consumer Price Index L. GDP deflator • • • Measures the snowball effect of a change in spending on GDP #Tradeoff between the unemployment rate and the inflation rate M. Phillips curve N. AD declines, SRAS goes up. Price rises, Output stays the same O. The Aggregator P. Benefits from deflation In a self regulating economy. AD will automatically rise to bring the economy out of recession R. Multiplier effect S. The LRAS curve Represents the natural unemployment rate as long as cyclical unemployment rate is less than or equal to 2%

Answer 1

Tradeoff between and the inflabon Keynesian view the rate unemployment rate and Miy Philips Curre Gy Focuses on the Now Short Run. a • classical view 3Y Dwing recessionary I and inflationary times, the economy adjust to fall employment level an ato own. • A measure of inflation in the prices of All final goods and services produced within the borde of a country → ky the consumer price index. 1 Measures the sncemball effect of a change in spending on GDP RY Multiplies effect

• Consumers are persimest about the Juture → DY AD declines, SRAS romans canchanged , both price and outpat decline. • A new mother who resigns from her job as a chiel economest of a mojo bank to care for her baby full time. ay Unemployed economy with a combined structural and frictional unemployment rate of 3 % 7 Full employment ich cyclical unemployment is equal to Zoro

A lenders of funds PY Bence Benefits from deflation • Sticky wages Hy Under employment