Annual Percentage Change of Money (Nominal) Wage Rates (PCHWR) PCM PCMWR-2 PCMWR-1 Figure 1: The Phillips Curve b) Increase government purchases (G). c) All the above are true. d) None of the above is true. Long-Run Phillips Curve X U-2 Annual Unemployment Rate (U) Short Run Phillips Curve 2. (Referring to figure 1: The Phillips Curve) Which of the following could be a relevant fiscal policy to be used if the economy is at point Z? a) Open market sale.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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PCMWR
PCMWR-1
0
a) D→C → B
b) DC → D
b) Increase government purchases (G).
c) All the above are true.
d) None of the above is true.
Figure 1: The Phillips Curve
Long-Run Phillips Curve
c) D→ A → B
d) None of the above is a correct order.
1-3 U-2
of
2. (Referring to figure 1: The Phillips Curve) Which of the following could be a relevant fiscal policy to be
used if the economy is at point Z?
a) Open market sale.
U-2
Annual Unemployment Rate (U)
Figure: Macroeconomic Equilibria
LR-AS
Y:
SR-ASI
Short Run Phillips Curve
Y
SR-AS1
AD₁
3. (Referring to Previous Figure: Macroeconomic Equilibria) Which of the following order of equilibrium
points is best representing how the government is implementing a policy that corrects for a positive demand
shock?
AD₂
Transcribed Image Text:PCMWR PCMWR-1 0 a) D→C → B b) DC → D b) Increase government purchases (G). c) All the above are true. d) None of the above is true. Figure 1: The Phillips Curve Long-Run Phillips Curve c) D→ A → B d) None of the above is a correct order. 1-3 U-2 of 2. (Referring to figure 1: The Phillips Curve) Which of the following could be a relevant fiscal policy to be used if the economy is at point Z? a) Open market sale. U-2 Annual Unemployment Rate (U) Figure: Macroeconomic Equilibria LR-AS Y: SR-ASI Short Run Phillips Curve Y SR-AS1 AD₁ 3. (Referring to Previous Figure: Macroeconomic Equilibria) Which of the following order of equilibrium points is best representing how the government is implementing a policy that corrects for a positive demand shock? AD₂
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