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

ʺAll for One, but None for Allʺ In an article regarding how Great Britain and France are addressing the economic crisis in 2008, Britainʹs prime minister ʺis eager to encourage consumer spendingʺ while Franceʹs president ʺwants to boost investment in both the private and public sectors.ʺ Both leaders are concerned because ʺhardly a day goes by without some manufacturing company announcing painful restructuring, plant closures or temporary lay-offs. If consumption and investment are increased by the governmentsʹ policies, we would expect ___________ and a___________ the short -run Phillips curve.

Phillips curves describe the relationship between

If people correctly expect an increase in aggregate demand, their money wage rate___________ Immediately, the SAS curve shifts___________ .

Suppose that forecasters have incorrectly estimated aggregate demand. According to the__________ , this mistake could trigger a business cycle.

Looking at U.S. economic history between 1964 and 2009, we see that growth in real GDP

Which of the following could NOT start a demand-pull inflation?

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

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

Demand-pull inflation starts with a shift of the

If the economy is initially at potential GDP and people correctly anticipate an increase in inflation so that their money wage rate adjusts immediately, then

Demand-pull inflation can start when