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
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 unemployment will return to the natural rate when ?
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 - 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 - 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 - The expectations augmented Phillips curve was the Work of which group of economists ?
A. New classical economists
B. Keynesian.
C. Monetarists
D. Marxists. - The long-run Phillips curve is ____ at the ____?
A. horizontal, natural rate of inflation
B. horizontal natural rate of unemployment
C. vertical natural rate of inflation
D. vertical equilibrium rate of unemployment - The Phillips curve indicates that there is a ?
A. negative relationship between the inflation rate and labor demand
B. positive relationship between labor supply and the inflation rate
C. positive relationship between the inflation rate and the employment the
D. negative relationship between the inflation rate and the unemployment rate - 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 - The Short run Phillips curve can shift in response to changes in ?
A. Inflationary expectations
B. unemployment
C. the inflation rates
D. wage rates - Refers to Exhibit 4. Suppose the economy is operating in a recession such as point B in Exhibit 4. If policy makers allow the economy to adjust to the long run natural rate on its own, ?
A. People will reduce their price expectations and the short run aggregate supply will shift right
B. People will raise their price expectations and aggregate demand will shift left
C. People will raise their price expectations and the short run aggregate supply will shift left
D. People will reduce their price expectations and aggregate demand will shift right
