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
Related Mcqs:
- 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 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 - 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 - 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 - 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 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 - 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. - 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
