Question 1

In a recovery phase,

Accepted Answer

A)  inflation and unemployment fall. 
B)  inflation rises as unemployment falls. 
C)  inflation falls as unemployment rises. 
D)  inflation and real GDP rise. 
A)  inflation and unemployment fall. 
B)  inflation rises as unemployment falls. 
C)  inflation falls as unemployment rises. 
D)  inflation and real GDP rise.

Question 2

In a recovery phase,

Accepted Answer

A)  the inflation rate rises. 
B)  although the price level rises, the inflation rate falls. 
C)  the price level falls. 
D)  the price level and the inflation rate fall. 
A)  the inflation rate rises. 
B)  although the price level rises, the inflation rate falls. 
C)  the price level falls. 
D)  the price level and the inflation rate fall.

Question 3

During a recovery phase,

Accepted Answer

A)  inflation and unemployment both increase. 
B)  inflation and unemployment stay the same. 
C)  inflation and unemployment both decrease. 
D)  unemployment decreases and inflation increases. 
A)  inflation and unemployment both increase. 
B)  inflation and unemployment stay the same. 
C)  inflation and unemployment both decrease. 
D)  unemployment decreases and inflation increases.

Question 4

Stagflation implies that

Accepted Answer

A)  policymakers can choose to have less unemployment if they are willing to accept a higher rate of inflation. 
B)  a tradeoff between inflation and unemployment may not always exist. 
C)  any relationship between the inflation and unemployment was purely random. 
D)  the relationship predicted by the Phillips curve is stable. 
A)  policymakers can choose to have less unemployment if they are willing to accept a higher rate of inflation. 
B)  a tradeoff between inflation and unemployment may not always exist. 
C)  any relationship between the inflation and unemployment was purely random. 
D)  the relationship predicted by the Phillips curve is stable.

Question 5

Consider the following statement: "President X expressed satisfaction with last year's economic performance. He said that with inflation and unemployment heading down, the nation 'is on the right course'. " Identify the stage of the inflation-unemployment phase.

Accepted Answer

A)  the stagflation phase 
B)  the recovery phase 
C)  the Phillips phase 
D)  the growth phase 
A)  the stagflation phase 
B)  the recovery phase 
C)  the Phillips phase 
D)  the growth phase

Question 6

Use the following to answer questions .
Exhibit: The Inflation-Unemployment Cycle  
-(Exhibit: The Inflation-Unemployment Cycle) Expansionary policy to counter a recessionary gap would move the economy from point:

Accepted Answer

A)  1 to 2. 
B)  3 to 2. 
C)  3 to 4. 
D)  4 to 3. 
A)  1 to 2. 
B)  3 to 2. 
C)  3 to 4. 
D)  4 to 3.

Question 7

Use the following to answer questions .
Exhibit: Inflation and Unemployment 2  
-(Exhibit: Inflation and Unemployment 2) Which of the following represents a stagflation phase?

Accepted Answer

A)  The movement from A to B 
B)  The movement from B to C 
C)  The movement from C to D 
D)  The movement from A to C 
A)  The movement from A to B 
B)  The movement from B to C 
C)  The movement from C to D 
D)  The movement from A to C

Question 8

Which of the following affect the values of inflation and unemployment?
I. changes in government spending
II. expectations about the price level
III. changes in nominal wages
IV. changes in money supply

Accepted Answer

A)  I and IV only 
B)  I, II, and IV only 
C)  II and III only 
D)  I, II, III, and IV 
A)  I and IV only 
B)  I, II, and IV only 
C)  II and III only 
D)  I, II, III, and IV

Question 9

Use the following to answer questions .
Exhibit: Inflation and Unemployment 1  
-(Exhibit: Inflation and Unemployment 1) Moving from B to A shows a tradeoff of

Accepted Answer

A)  more unemployment for less inflation. 
B)  less unemployment for more inflation. 
C)  a fixed amount of unemployment for more inflation. 
D)  less unemployment for less inflation. 
A)  more unemployment for less inflation. 
B)  less unemployment for more inflation. 
C)  a fixed amount of unemployment for more inflation. 
D)  less unemployment for less inflation.

Question 10

The relationship between inflation and unemployment suggested by the experience of the 1960s was supported by the results in the U.S. economy from 1970 to 2015.

Accepted Answer

A) True 
 B)False

Question 11

Suppose an economy is operating with an inflationary gap. In this case, policymakers would
Seek to move the economy

Accepted Answer

A)  back down the Phillips curve toward an unemployment rate that is closer to the natural rate of unemployment. 
B)  up the Phillips curve toward an unemployment rate that is closer to the natural rate of unemployment. 
C)  back down the Phillips curve toward an unemployment rate that is further from the natural rate of unemployment. 
D)  up the Phillips curve toward an unemployment rate that is further from the natural rate of unemployment. 
A)  back down the Phillips curve toward an unemployment rate that is closer to the natural rate of unemployment. 
B)  up the Phillips curve toward an unemployment rate that is closer to the natural rate of unemployment. 
C)  back down the Phillips curve toward an unemployment rate that is further from the natural rate of unemployment. 
D)  up the Phillips curve toward an unemployment rate that is further from the natural rate of unemployment.

Question 12

The notion that there is a tradeoff between inflation and unemployment is expressed as a

Accepted Answer

A)  Phillips curve. 
B)  Keynes curve. 
C)  Schumpeter curve. 
D)  Friedman curve. 
A)  Phillips curve. 
B)  Keynes curve. 
C)  Schumpeter curve. 
D)  Friedman curve.

In a recovery phase,

In a recovery phase,

During a recovery phase,

Stagflation implies that

Consider the following statement: "President X expressed satisfaction with last year's economic performance. He said that with inflation and unemployment heading down, the nation 'is on the right course'. " Identify the stage of the inflation-unemployment phase.

Use the following to answer questions . Exhibit: The Inflation-Unemployment Cycle -(Exhibit: The Inflation-Unemployment Cycle) Expansionary policy to counter a recessionary gap would move the economy from point:

Use the following to answer questions . Exhibit: Inflation and Unemployment 2 -(Exhibit: Inflation and Unemployment 2) Which of the following represents a stagflation phase?

Which of the following affect the values of inflation and unemployment? I. changes in government spending II. expectations about the price level III. changes in nominal wages IV. changes in money supply

Use the following to answer questions . Exhibit: Inflation and Unemployment 1 -(Exhibit: Inflation and Unemployment 1) Moving from B to A shows a tradeoff of

The relationship between inflation and unemployment suggested by the experience of the 1960s was supported by the results in the U.S. economy from 1970 to 2015.

Suppose an economy is operating with an inflationary gap. In this case, policymakers would Seek to move the economy

The notion that there is a tradeoff between inflation and unemployment is expressed as a

Economics: the Study of Choice

Demand and Supply

Applications of Supply and Demand

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Consumption and the Aggregate Expenditures Model

Investment and Economic Activity

Net Exports and International Finance

A Brief History of Macroeconomic Thought and Policy

Inequality, Poverty, and Discrimination

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Exam 16: Inflation and Unemployment

In a recovery phase,

In a recovery phase,

During a recovery phase,

Stagflation implies that

Consider the following statement: "President X expressed satisfaction with last year's economic performance. He said that with inflation and unemployment heading down, the nation 'is on the right course'. " Identify the stage of the inflation-unemployment phase.

Use the following to answer questions . Exhibit: The Inflation-Unemployment Cycle -(Exhibit: The Inflation-Unemployment Cycle) Expansionary policy to counter a recessionary gap would move the economy from point:

Use the following to answer questions . Exhibit: Inflation and Unemployment 2 -(Exhibit: Inflation and Unemployment 2) Which of the following represents a stagflation phase?

Which of the following affect the values of inflation and unemployment? I. changes in government spending II. expectations about the price level III. changes in nominal wages IV. changes in money supply

Use the following to answer questions . Exhibit: Inflation and Unemployment 1 -(Exhibit: Inflation and Unemployment 1) Moving from B to A shows a tradeoff of

The relationship between inflation and unemployment suggested by the experience of the 1960s was supported by the results in the U.S. economy from 1970 to 2015.

Suppose an economy is operating with an inflationary gap. In this case, policymakers would Seek to move the economy

The notion that there is a tradeoff between inflation and unemployment is expressed as a

Economics: the Study of Choice

Demand and Supply

Applications of Supply and Demand

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Consumption and the Aggregate Expenditures Model

Investment and Economic Activity

Net Exports and International Finance

A Brief History of Macroeconomic Thought and Policy

Inequality, Poverty, and Discrimination

Filters