Ans) the correct option is d) an increase in structural unemployment shifts the phillips curve to the right and an increase in inflation expectations shifts the phillips curve up.
Question 10 1 pts Which of the following is true? in structural unemployment shifts the Phillips...
Which of the following is true? An increase in structural unemployment shifts the Phillips curve to the left and an increase in inflation expectations shifts the Phillips curve down. 0 An increase in structural unemployment shifts the Phillips curve to the right and an increase in inflation expectations shifts the Phillips curve down. 0 An increase in structural unemployment shifts the Phillips curve to the left and an increase in inflation expectations shifts the Phillips curve up. O An increase...
Suppose the Phillips Curve is an accurate depiction of the inflation/unemployment trade off. Assume there are no exogenous supply shocks and agents set price expectations adaptively. Let NAIRU be positive. What happens to the Phillips curve if the inflation responsiveness to unemployment decreases? A. The Phillips curve becomes flatter and does not shift. B. The Phillips curve becomes steeper and shifts up. C. The Phillips becomes flatter and shifts down. D. The Phillips curve becomes steeper and does not shift.
Consider the short-run and long-run Phillips Curves illustrated in the figure below. Assume consumers have a daptive expectations. Suppose the inflation rate has been 15 percent for the past four years. The unemployment rate is currently at the natural rate of unemployment of 5 percent. The Federal Reserve decides that it wants to permanently reduce the inflation rate to 5 percent and uses monetary policy to do so. Describe the new short-run Phillips Curve with adaptive expectations. PC- PC- Inflation...
An increase in expected inflation shifts the short-run Phillips curve right. a. b. short-run Phillips curve left. long-run Phillips curve right. C. d. long-run Phillips curve left. O Icon Key
Question 6 For this question, assume that the Phillips curve equation is represented by the following equation: m,- -1 = (m + Z)-aut . Which of the following will cause a reduction in the natural rate of unemployment? an increase in m an increase in expected inflation O an increase in z an increase in actual inflation O an increase in α Question 7 1 pts For this question, assume that the Phillips curve equation is represented by the following...
1. Is the Phillips curve a myth? Intertemporal tradeoff between inflation and unemployment After the World War II, empirical economists noticed that, in many advanced economies, as unemployment fell, inflation tended to rise, and vice versa. The inverse relationship between unemployment and Inflation, was depicted as the Phillips curve, after William Phillips of the London School of Economics. In the 1950s and 1960s, the Phillips curve convinced many policy makers that they could use the relationship to pick acceptable levels...
11. How does a decrease in the expected rate of inflation shift the Phillips curves? a. It shifts both the short-run and long-run Phillips curves to the right. b. It shifts both the short-run and long-run Phillips curves to the left. It shifts only the short-run Phillips curve to the right. d. It shifts only the short-run Phillips curve to the left. in hou do the short-run Phillips curve and unemplo C.
OY 10. By referring to Figure 7-1, an increase in the money stock a shifts the LM schedule to the right from LMoto LM b shifts the LM schedule to the left from LMo to LM e leaves the LM curve unchanged at LM. d. shifts neither the IS nor the LM schedule. 11. Changes in all of the following shift the LM curve except a. the price level. b. income. c. the money supply. d. money demand. e. all...
20. Banks decide to raise the interest rate they pay on checking accoun action would A) increase money demand, shifting the LM curve up and to the ci B) increase money demand, shiftino the IM curve down and to the C) decrease money demand, shifting the M curve up and to the tem D) decrease money demand, shifting the LM curve down and to cing accounts from 1% to 2%. This curve down and to the right. & the LM...
1. If the long-run Phillips curve shifts to the right, for any given rate of money growth and inflation the economy will have a. higher unemployment and higher output.b. higher unemployment and lower output.c. lower unemployment and higher output.d. lower unemployment and lower output.