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 ?

Related Mcqs:

An increase in expected inflation ?

A. shifts the short run Phillips curve downward and the unemployment inflation trade-off is less favorable. B. shifts the short-run Phillips curve upward and the unemployment inflation trade-off is more favorable C. Shift the short-run Phillips curve downward and the unemployment inflation trade-off is more favorable D. Shifts the Short run Phillips curve upward and … An increase in expected inflation ?Read More...

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...

The natural rate hypothesis argues that ?

A. in the long run the unemployment rate returns to the natural rate, regardless of inflation B. Unemployment is always below the natural rate C. Unemployment is always above the natural rate D. Unemployment is always equal to the natural rate...

A decrease the Price of foreign oil ?

A. Shifts the short-run Phillips curve downward and make the unemployment inflation trade-off less favorable B. Shifts the short run Phillips curve upward and makes the unemployment inflation trade-off more favorable C. Shifts the short run Phillips curve upward and makes the Unemployment inflation trade off more favorable D. Shifts the short run Phillips curve … A decrease the Price of foreign oil ?Read More...

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

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