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.Management Sciences
Category: Aggregate Supply, Unemployment And 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
If input price prices adjusted very rapidly to output prices as classical economists argue the Philips curve would be ?
A. Vertical or nearly vertical
B. upward sloping
C. downward sloping
D. horizontal or nearly horizontal
The view of the Phillips curve that prevailed in the 1960s implied that policies that ?
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
Expansionary fiscal policy in the classical model will cause aggregate demand to _______ potential output?
A. exceeds
B. fall below
C. fluctuate around
D. remain equal to
An unspoken agreement between workers and firms that the firm will not cut wages is known as ?
A. an implicit or social contract
B. a relative-wage contract
C. employment at will
D. an explicit contract
The natural rate of unemployment is generally thought to be the sum of ?
A. frictional unemployment and seasonal unemployment
B. frictional unemployment and cyclical unemployment
C. frictional unemployment and structural unemployment
D. cyclical unemployment and structural unemployment
In the events of an increase in the international price of oil that encouraged the central bank to accept lower real interest rates, inflation would most likely ?
A. fall
B. increase
C. remain the same
D. fluctuates
At the intersection of AD and AS equilibrium is achieved in ?
A. the goods market
B. the money markets
C. the labor markets
D. all of these
The Short run Phillips curve can shift in response to changes in ?
A. Inflationary expectations
B. unemployment
C. the inflation rates
D. wage rates
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