The Phillips curve shows that ?

Related Mcqs:

1. 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

2. 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

3. The original Phillips curve illustrates ?

   A. the trade-off between inflation and unemployment
   B. The trade-off between output and unemployment
   C. The positive relationship between output and unemployment
   D. The positive relationship between inflation and unemployment

4. 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.

5. 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

6. 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

7. The expectations augmented Phillips curve was the Work of which group of economists ?

   A. New classical economists
   B. Keynesian.
   C. Monetarists
   D. Marxists.

8. 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

9. 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

10. The Short run Phillips curve can shift in response to changes in ?

    A. Inflationary expectations
    B. unemployment
    C. the inflation rates
    D. wage rates