Question 1

The long-run Phillips curve shows the relationship between

Accepted Answer

A)  the inflation rate and the unemployment rate. 
B)  real GDP and potential GDP. 
C)  the nominal interest rate and real interest rate. 
D)  the inflation rate and the natural unemployment rate. 
E)  real GDP and the natural unemployment rate. 
A)  the inflation rate and the unemployment rate. 
B)  real GDP and potential GDP. 
C)  the nominal interest rate and real interest rate. 
D)  the inflation rate and the natural unemployment rate. 
E)  real GDP and the natural unemployment rate.

Question 2

When the natural unemployment rate changes, what happens to the short-run Phillips curve?
 To the long-run Phillips curve?

Accepted Answer

When the natural unemployment rate chang

Question 3

At full employment,

Accepted Answer

A)  real GDP exceeds potential GDP. 
B)  the unemployment rate is equal to the natural unemployment rate. 
C)  the unemployment rate is zero. 
D)  the inflation rate is zero. 
E)  the inflation rate must equal the natural unemployment rate. 
A)  real GDP exceeds potential GDP. 
B)  the unemployment rate is equal to the natural unemployment rate. 
C)  the unemployment rate is zero. 
D)  the inflation rate is zero. 
E)  the inflation rate must equal the natural unemployment rate.

Question 4

If the price level rises from 100 to 110 then the inflation rate is

Accepted Answer

A)  1.0 percent. 
B)  10.0 percent. 
C)  100 percent. 
D)  110 percent. 
E)  None of the above answers is correct. 
A)  1.0 percent. 
B)  10.0 percent. 
C)  100 percent. 
D)  110 percent. 
E)  None of the above answers is correct.

Question 5

-In the figure above, the expected inflation rate is

Accepted Answer

A)  0 percent. 
B)  2 percent. 
C)  4 percent. 
D)  6 percent. 
E)  8 percent. 
A)  0 percent. 
B)  2 percent. 
C)  4 percent. 
D)  6 percent. 
E)  8 percent.

Question 6

The long-run Phillips curve represents the relationship between the inflation rate and the unemployment rate when there is no ________ unemployment.

Accepted Answer

A)  cyclical 
B)  structural 
C)  seasonal 
D)  frictional 
E)  natural 
A)  cyclical 
B)  structural 
C)  seasonal 
D)  frictional 
E)  natural

Question 7

The short-run Phillips curve shows

Accepted Answer

A)  potential GDP. 
B)  a tradeoff between the unemployment rate and the inflation rate. 
C)  the natural unemployment rate. 
D)  the expected inflation rate. 
E)  a tradeoff between real GDP and unemployment. 
A)  potential GDP. 
B)  a tradeoff between the unemployment rate and the inflation rate. 
C)  the natural unemployment rate. 
D)  the expected inflation rate. 
E)  a tradeoff between real GDP and unemployment.

Question 8

In order to keep the real wage rate constant, the

Accepted Answer

A)  money wage rate must increase by the same amount as the inflation rate. 
B)  inflation rate must be exactly one half of the expected inflation rate. 
C)  nominal interest rate must be equal to the inflation rate. 
D)  money wage rate must increase when the price level falls. 
E)  money wage rate must decrease by the same amount as the inflation rate. 
A)  money wage rate must increase by the same amount as the inflation rate. 
B)  inflation rate must be exactly one half of the expected inflation rate. 
C)  nominal interest rate must be equal to the inflation rate. 
D)  money wage rate must increase when the price level falls. 
E)  money wage rate must decrease by the same amount as the inflation rate.

The long-run Phillips curve shows the relationship between

When the natural unemployment rate changes, what happens to the short-run Phillips curve? To the long-run Phillips curve?

At full employment,

If the price level rises from 100 to 110 then the inflation rate is

-In the figure above, the expected inflation rate is

The long-run Phillips curve represents the relationship between the inflation rate and the unemployment rate when there is no ________ unemployment.

The short-run Phillips curve shows

In order to keep the real wage rate constant, the

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and the Natural Unemployment Rate

Economic Growth

Finance, Saving, and Investment

The Monetary System

Money, Interest, and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters

Exam 15: The Short-Run Policy Tradeoff

The long-run Phillips curve shows the relationship between

When the natural unemployment rate changes, what happens to the short-run Phillips curve? To the long-run Phillips curve?

At full employment,

If the price level rises from 100 to 110 then the inflation rate is

-In the figure above, the expected inflation rate is

The long-run Phillips curve represents the relationship between the inflation rate and the unemployment rate when there is no ________ unemployment.

The short-run Phillips curve shows

In order to keep the real wage rate constant, the

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and the Natural Unemployment Rate

Economic Growth

Finance, Saving, and Investment

The Monetary System

Money, Interest, and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters