Exam 17: The Trade Off between Inflation and Unemployment

Figure 17-6 -The short-run Phillips curve in Figure 17-6 would include which of the following points?

If fluctuations in economic activity come from the supply side,higher inflation is associated with

Many economists think that,in the long run,the economy tends to move toward

One reason that the Phillips curve "broke down" is that it

Some of the promising approaches to reducing the natural rate of unemployment have to do with education,training,and job placement.What implementation problems do you anticipate?

Figure 17-5 -The data illustrated in Figure 17-5 would be most representative of which decade?

One explanation for the increase in the natural rate of unemployment in 2010 was a mismatch between the skills of the American labor force and the skills that the modern job market demanded.

Figure 17-7 -In Figure 17-7,the only sustainable long-run equilibrium position is at point

Figure 17-2 -Given the situation in graph (1)in Figure 17-2,what movement would be expected in graph (2)from the economy's self-correcting mechanism?

When the Phillips curve was first formulated (late 1960s),many economists thought that it showed a

In 2010 the U.S.economy's inflation rate was higher than its unemployment rate.

Which of the following is most likely to result in inflation?

Policies to lower the natural rate of unemployment include

If economic fluctuations originate on the supply side,

Figure 17-8 -In Figure 17-8,which of the following movements reflects the Fed's anti-inflationary policy of the early 1980s and the following market adjustment?

Most economists now agree that the Phillips curve demonstrates that there is

If employees and employers always accurately predict inflation,what is the shape of the Phillips curve?

The economy's self-correcting mechanism tends to push the unemployment rate back to a specific rate of unemployment.How?

The rapid advance in computer technology is one of the reasons given for the shift of the

The economy's self-correcting mechanism always tends to push the unemployment rate back toward a specific rate of unemployment called