Exam 12: The Business Cycle, Inflation, and Deflation

Keynesians believe that

For a given level of anticipated inflation and natural unemployment rate, the short-run Phillips curve shows the relationship between

A demand-pull inflation initially is characterized by

Stagflation occurs when the SAS curve shifts leftward.

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

If the economy is at potential GDP and the Fed increases the quantity of money, then

The new Keynesian cycle theory views only anticipated changes in aggregate demand as the source of business cycle economic fluctuations.

A cost-push inflation spiral results if the Fed's response to stagflation is to keep

Demand-pull inflation persists because of

Inflation describes the event of increasing output and rising prices.

In real business cycle theory, the factor leading to a business cycle is represented by

Critics of the real business cycle theory claim that

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.

As the money wage rate rises

In monetarist business cycle theory, increases in money growth temporarily ________ real GDP and ________ the price level.

Which of the following can start a demand-pull inflation?

Which of the following is held constant when moving along a short-run Phillip's curve?

-In the above figure, suppose that the economy currently is at point A. If the inflation rate falls and this fall is unanticipated by the public, the economy moves to a point such as point

The new classical theory argues that the primary factor leading to business cycles are

The long-run Phillips curve is