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 ?

Related Mcqs:

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...

When actual inflation exceeds expected inflation ?

A. Unemployment is equal to the natural rate of unemployment B. People will reduce their expectations of inflation in the future C. Unemployment is greater than the natural rate of unemployment D. Unemployment is less than the natural rate of unemployment...

Refer to Exhibit 6.If People in the economy expect inflation to be 6 percent but inflation turn out to be 3 percent the economy is operating at point ?

A. H B. c C. d D. F...

Refer to Exhibit 6. Suppose the economy is Operating in long-run equilibrium at point E. In the long run a monetary contraction will move the economy in the direction of point ?

A. F B. a C. H D. I...

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...