A. Nominal wages are equal to expected wages
B. Real wages are back at equilibrium level
C. Nominal wages are growing faster than inflation
D. Inflation is higher than the growth of nominal wages
Related Mcqs:
- 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 - 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 - Unemployment benefits may increase the unemployment rate because unemployment benefits ?
A. encourage people to quit their jobs
B. reduce the cost of job search
C. enable people to quit searching for work
D. reduce the benefits of additional job searching - In the short run unemployment may fall below the natural rate of unemployment if ?
A. Nominal wages have risen less than inflation
B. Nominal wages have risen at the same rate as inflation
C. Nominal wages have risen more than inflation
D. Nominal wages have risen less than unemployment - Suppose two economists are arguing about policies that deal with unemployment. One economist says. The government could lower unemployment by one percentage point if it would just increase government spending by 50 billion dollars the other economist responds Nonsense and poppycock! If the government spent an additional 50 billion dollars it would reduce unemployment by only one tenth of one percent. and that effect would only be temporary! These economists ?
A. None of these answers
B. Disagree because they have different scientific judgments
C. really don’t disagree at all. It just appears that they disagree
D. disagree because they have different values - 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 - The measured unemployment rate can be pushed below the natural rate, but ?
A. only in the short run, and not without inflation
B. only in the long run and not without inflation
C. only is the short run and only if the price level is constant
D. only in the long run and only if the price level is constant - The Phillips curve shows the relationship between inflation and what ?
A. The balance of trade
B. The rate of growth in an economy
C. The rate of price increase
D. Unemployment - The expectations augmented Phillips curve was the Work of which group of economists ?
A. New classical economists
B. Keynesian.
C. Monetarists
D. Marxists. - The Phillips curve shows the trade-off between _____ and _____?
A. the inflation rate, interest rates
B. the inflation rate, the unemployment rate
C. interest rates, output
D. output, employment
