Exam 12: Inflation, Jobs, and the Business Cycle

What is the factor that leads to business cycles in the new Keynesian cycle theory?

The new Keynesian cycle theory of the business cycle regards ________ as the main source of economic fluctuations.

Suppose the expected inflation rate is 8 percent and the unemployment rate is 3 percent.If the inflation rate rises to 10 percent and the expected inflation rate does not change,

Which of the following is a criticism of real business cycle theory?

-In the above figure,suppose the economy starts at point A.The short-run response to a decrease in the growth rate of the quantity of money in monetarist business cycle theory moves the economy to point

Which of the following results in the aggregate demand curve shifting rightward year after year?

In the short run,if there is an increase in the money wage rate,then

-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 ________.

One model of the business cycle claims that volatile business confidence is the primary factor in starting a business cycle.This model is the

In the Keynesian business cycle theory,business cycles begin with changes in

Critics of the real business cycle model argue that

Phillips curves describe the relationship between

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.

Which of the following are business cycle theories that regard fluctuations in aggregate demand as the factor creating business cycles? I. Keynesian cycle theory II. real business cycle theory III. monetarist cycle theory

What is the intertemporal substitution effect and what role does it play in the real business cycle model?

The factor that leads to business cycle events within real business cycle theory is

A demand-pull inflation initially is characterized by

Moving along a short-run Phillips curve,

Inflation rate (percent per year) Unemployment rate (percent) 8 3 6 4 4 5 2 6 -An economy's natural unemployment rate is 4 percent.The table above gives some points on the economy's short-run Phillips curve.If the expected inflation rate becomes 8 percent per year,then the ________.

Suppose the data show that an unexpected change in tax rates caused a recent recession.These data support which model of the business cycle?