Exam 12: U.S. Inflation, Unemployment, and Business Cycle

"The short- run Phillips curve is vertical at the natural unemployment rate." Is the previous statement correct or incorrect?

An increase in the natural unemployment rate shifts both the long- run Philips curve and the short- run Phillips curve rightward.

Demand- pull inflation occurs when

A demand- pull inflation spiral results when

-In the above figure, the economy is at point A. An increase in oil prices occurs after which the Fed responds by increasing the quantity of money. The economy moves from point A to

The real business cycle theory asserts that changes in lead to changes in .

New Keynesian economists believe that is influenced by .

In demand- pull inflation, at the start

Which theory views fluctuations in productivity as the main source of business cycle fluctuations?

Which business cycle theory emphasizes that, because of long- term wage agreements, both expected and unexpected fluctuations in aggregate demand can change real GDP?

A demand- pull inflation occurred in the United States during most of the later part of the

The short- run Phillips curve

By itself, a fall in the price of oil shifts the

Demand- pull inflation starts with

If oil prices increase, then in the short run, real GDP will and the price level will )

Which of the following is the factor that leads to business cycles in the new classical business cycle theory?

The data below show data for Germany including real GDP (in billions of euros) and the price level. In which of the following year(s) did Germany experience a recession?

In monetarist business cycle theory, increases in money growth temporarily _ real GDP and The price level.

Which of the following correctly describes the new classical cycle theory of the business cycle?

-In the above figure, suppose that the economy is at point A when the quantity of money increases. In the short run, the economy will move to point .