Moving along the short-run Phillips curve, if ________ increases, then ________ decreases. unemployment; the expected inflation rate unemployment; the price level inflation; the price level inflation; real GDP inflation; unemployment
Moving along the short-run Phillips curve, if ________ increases, then ________ decreases. unemployment; the expected inflation rate unemployment; the price level inflation; the price level inflation; real GDP inflation; unemployment
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Moving along the short-run Phillips curve , if ________ increases, then ________ decreases.
unemployment; the price level
inflation; the price level
inflation; real GDP
inflation; unemployment
According to Okun's Law, when the natural employment rate is 6 percent and potential GDP is $10 trillion, then when actual employment is 7 percent, real GDP is
$9.8 trillion.
$10.1 trillion.
$10.2 trillion.
$9.9 trillion.
$8 trillion.
The long-run Phillips curve shows the relationship between
inflation and interest rates at full employment.
aggregate demand and aggregate supply at full employment.
inflation and unemployment at full employment.
aggregate demand and interest rates at full employment.
the price level and real GDP when the economy is not at full employment.
If the expected inflation rate changes, the long-run Phillips curve ________, and the short-run Phillips curve ________.
does not shift; does not shift
shifts rightward; does not shift
does not shift; shifts upward
shifts rightward; shifts upward
shifts rightward; shifts downward
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