Refer to Exhibit 6. Suppose the economy is operating at point (D) As people revise their price expectations ?

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...

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 … Along a short-run Phillips curve, ?Read More...

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...