If a country’s policy makers were to continuously use expansionary monetary policy in an attempt to hold unemployment below the natural rate the long-run result would be ?

Related Mcqs:

The misery index Which some commentators suggest measures the health of the economy, is ?

A. The sum of the growth rate of output and the inflation rate B. The sum of the natural rate of unemployment and the actual rate of unemployment C. The sum of the inflation rate and the central bank’s refinancing rate D. The sum of the unemployment rate and the inflation rate...

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...

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 ?

A. is vertical B. is negatively sloped C. has a slope that is determined by how fast people adjust their price expectations D. is positively sloped...

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...

Which of the following would shift the long-run Phillips curve to the right ?

A. An increase in the minimum wage B. An increase in the expected inflation C. An increase in the price of foreign oil D. An increase in the aggregate demand...