The original Phillips curve illustrates ?

Related Mcqs:

1. The Phillips curve is an extension of the model of aggregate supply and aggregate demand because, in the short run, an increase in aggregate demand increase price and ?

   A. decreases unemployment
   B. decrease growth
   C. increases unemployment
   D. decreases inflation

2. If, in the long run, people adjust their price expectations so that all prices and incomes move proportionately to an increase in the price level then the long-run Phillips curve ?

   A. is vertical
   B. is negatively sloped
   C. has a slope that is determined by how fast people adjust their price expectations
   D. is positively sloped

3. Along a short-run Phillips curve, ?

   A. a higher rate of inflation is associated with a lower unemployment rate
   B. a higher rate of growth in output is associated with a lower unemployment rate
   C. a higher rate of inflation is associated with a higher unemployment rate
   D. a higher rate of growth in output is associated with a higher unemployment rate.

4. According to the Phillips curve, in the short run, if policy makers choose an expansionary policy to lower the rate of unemployment ?

   A. The economy will experience an increase in inflation
   B. The economy will experience a decrease in inflation
   C. Inflation will be unaffected if price expectations are unchanging
   D. None of these answers

5. Which of the following would shift the long-run Phillips curve to the right ?

   A. An increase in the minimum wage
   B. An increase in the expected inflation
   C. An increase in the price of foreign oil
   D. An increase in the aggregate demand

6. The Phillips curve shows that ?

   A. the business cycle has been eliminated
   B. an increase in inflation temporarily increases unemployment.
   C. inflation and unemployment are unrelated in the short run.
   D. a decrease in inflation temporarily increases unemployment.
   E. none of these

7. The Phillips curve is a graph showing the relationship between ?

   A. the price level and the unemployment rate
   B. the inflation rate and the unemployment rate
   C. the level of aggregate output and the price level
   D. the inflation rate and the level of aggregate demand

8. The view of the Phillips curve that prevailed in the 1960s implied that policies that ?

   A. lower unemployment rate will tend to lower the inflation rate
   B. lower unemployment rate will tend to raise the inflation rate
   C. raise inflation rate will tend to raise the unemployment rate
   D. lower inflation rate will tend to raise the unemployment rate

9. In the long run, the Phillips curve will be vertical at the natural rate of unemployment if ?

   A. the long-run aggregate demand curve is horizontal at the natural rate of inflation
   B. the long run aggregate demand curve is vertical at potential GDP
   C. the long run aggregate demand curve is vertical at potential GDP
   D. The long run supply curve is horizontal at the natural rate of inflation

10. Doubts about the natural and the existences of the Phillips curve arose in the 1970s when the economy experienced ?

    A. a high rate of inflation: along with a low rate of unemployment
    B. simultaneously low rates of inflation and unemployment
    C. simultaneously high rates of inflation and unemployment
    D. a high rate of unemployment along with a low rate of inflation