Category: Aggregate Supply, Unemployment And Inflation

A. New classical economists
B. Keynesian.
C. Marxists
D. Monetarists

A. horizontal, natural rate of inflation
B. horizontal natural rate of unemployment
C. vertical natural rate of inflation
D. vertical equilibrium rate of unemployment

A. only in the short run, and not without inflation
B. only in the long run and not without inflation
C. only is the short run and only if the price level is constant
D. only in the long run and only if the price level is constant

A. the contention that workers in one industry may be unwilling to accept a wage cut unless they know that workers in other industries are receiving similar cuts
B. employment contracts that stipulate workers’ wages usually for a period of one to three years
C. unspoken agreements between workers and firms that firms will not cut wages
D. the incentive that firms may have to hold wages above the market clearing rate

A. the long-run aggregate demand curve is horizontal at the natural rate of inflation
B. the long run aggregate demand curve is vertical at potential GDP
C. the long run aggregate demand curve is vertical at potential GDP
D. The long run supply curve is horizontal at the natural rate of inflation

A. higher, lower
B. higher, higher
C. lower, lower
D. zero, zero

A. numbers of employees
B. welfare plans
C. budget deficits
D. expenditures

A. a vertical (or almost vertical)
B. a downward sloping
C. a horizontal (or almost horizontal)
D. an upward sloping

A. minimize negotiation costs
B. minimize unemployment effects
C. guarantee that only the least productive workers will be laid off.
D. will equitable spread the layoffs among junior and senior workers

A. Keynesian policies
B. Supply-side policies
C. Monetarist Policies
D. Classical policies