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

Business cycle events that arise solely from aggregate demand shifts are emphasized by the

In monetarist business cycle theory, decreasing the growth rate of the quantity of money__________ And increasing the growth rate of the quantity of money__________ .

Compare and contrast the Keynesian and Monetarist business cycle theories.

The short-run Phillips curve shows the relationship between .

What is a cost-push inflation?

According to the real business cycle RBC) theory, during a recession the demand for labor_________and the supply of labor _________.

According to the theory_________, technological change can be so rapid that some existing capital becomes obsolete and_________ .

A demand-pull inflation requires persistent increases in

Suppose that the money prices of raw materials increase so that short-run aggregate supply decreases. If the Federal Reserve does not respond, the higher money price of raw materials will I. repeatedly shift the aggregate demand curve rightward and raise the price level. II. shift the aggregate demand curve rightward and the aggregate supply curve leftward, raising prices. III. result initially in lower employment and a higher price level.

Real business cycle economists claim that the intertemporal substitution effect

Define and describe the short-run Phillips curve.

ʺShoe Industry under Pressure Amid Rising Costsʺ Rising costs have forced about 15 per cent of shoe manufacturers in a major south China industrial centre to shut down or relocate in the past year. [the firms have] identified rising wages as a key Factor behind the closures and relocations from Dongguan. The problems in the footwear industry Reflect broader issues affecting manufacturers across Chinaʹs Pearl River Delta. ʺ Using an AS/AD framework to describe the events in the story, there would be a

New Keynesian economists believe that__________ is influenced by __________.

The new classical cycle theory predicts that an unexpected increase in aggregate demand__________ create a business cycle and an expected increase in aggregate demand__________ create a business cycle.

In monetarist business cycle theory, the factor leading to a business cycle is changes in

-In the above figure, suppose that the economy currently is at point A. If the inflation rate rises and this rise is NOT expected by the public, the economy moves to a point such as point

Which of the following leads to a downward shift in the short-run Phillips curve?

The factor leading to business cycles according to the real business cycle theory is changes in

As far as demand-pull inflation goes, the United States

If the economy is at potential GDP and the Fed increases the quantity of money, then