Exam 12: Inflation, Jobs, and the Business Cycle

Real business cycle theory explains the business cycle as the result of

Which theory emphasizes frequent changes in investment because of "animal spirits" as the main source of economic fluctuations?

The government estimates that the natural unemployment rate has increased from 4.8 percent in 2006 to 5.2 percent in late 2012.If these estimates are accurate,the short-run Phillips curve has shifted ________ and the long-run Phillips curve has shifted ________.

Which business cycle theory emphasizes that,because of long-term wage agreements,both expected and unexpected fluctuations in aggregate demand can change real GDP?

Discuss the relationship between the short-run aggregate supply curve and the short-run Phillips curve.

Suppose the growth rate of the quantity of money increased from 5 percent per year to 8 percent per year.According to the ________,this event would trigger a business cycle expansion.

A demand-pull inflation requires persistent increases in

Increases in the quantity of money can create demand-pull inflation.

In monetarist business cycle theory,decreasing the growth rate of the quantity of money ________ and increasing the growth rate of the quantity of money ________.

"UK Inflation Surges to 16-year High" According to the story,"High inflation in July will also lead to ..."further rises next January ..." Economists also noted that inflation may get worse because the current data did not yet include "announced rises in gas and electricity prices." Www)ft.com,8/12/2008 The story reflects the concept of

In a demand-pull inflation,if the Fed stops expanding the quantity of money,

A demand-pull inflation consists of ________ shifts in the AD curve and ________ shifts in the SAS curve.

In 2008,when a recession started,the growth of government expenditures on goods and services doubled from its growth in 2007. According to the aggregate demand theories of the business cycle

Which theory maintains that the money wage rate always adjusts freely?

Cost-push inflation is an inflation that results from an initial ________.

New Keynesian economists believe that ________ is influenced by ________.

According to real business proponents,in an increase in productivity ________ the demand for loanable funds,________ the demand for labor,and ________ the supply of labor.The real interest rate will ________.

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

In the new Keynesian business cycle theory,________ can effect real GDP.

According to the real business cycle theory,the immediate effects from a change in productivity include which of the following? I. Investment demand changes. II. Demand for labor changes. III. Government expenditures change.