Question 29 Inflation rate (percent per year) 10 3 LRPC₂ LRPC LAPC₁ SRPC, SRPC, SRPC, 468 10 12 14 Unemployment rate (percent of labor force) The figure above shows some Phillips curves for an economy. Along the short-run Phillips curve SRPCO the natural unemployment rate is 6 percent. 8 percent. 4 percent. 3 percent. an amount that can be determined from the figure but none of the above answers is correct.

Question 29 Inflation rate (percent per year) 10 3 LRPC₂ LRPC LAPC₁ SRPC, SRPC, SRPC, 468 10 12 14 Unemployment rate (percent of labor force) The figure above shows some Phillips curves for an economy. Along the short-run Phillips curve SRPCO the natural unemployment rate is 6 percent. 8 percent. 4 percent. 3 percent. an amount that can be determined from the figure but none of the above answers is correct.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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According to the St. Louis Federal Reserve the natural unemployment rate is 4.44 percent (Q2 2022 B) and the U.S. Bureau of Labor Statistics (BLS) estimates the U.S. unemployment rate (U3, March 2022 ) to be 3.6 percent. If you expect unemployment to continue to fall the short-run Phillips curve would predict: O A decrease in the inflation rate. An increase in the inflation rate. A decrease in the unemployment rate. An increase in the unemployment rate.
EXPLAIN..... In the long run, the unemployment rate is determined by ____. the rate of cyclical unemployment the rates of frictional and structural unemployment the rate of structural unemployment the rate of frictional unemployment
Step 1 Plot the graphs. The corresponding table includes a breakdown including Inflation Rate, Unemployment Rate, Price Level, and Real GDP. Using the data below, plot the graphs: Plot the short-run Phillips curve and the aggregate supply curve on separate graphs. Plot the long-run Phillips curve on a separate graph, when the natural unemployment rate is 6%. Inflation Rate Unemployment Rate Price Level Real GD 2% 7% 104 9.8 3% 6% 103 10.0 4% 5% 102 10.2
O Macmillan Learning Unemployment and Inflation - End of Chapter Problem How will the following changes affect the natural rate of unemployment? Frictional unemployment falls a. The government reduces the duration of unemployment benefits. incorrect Frictional unemployment rises b. More teenagers focus on their studies and do not look for jobs until after college. Structural unemployment falls d. Union membership declines Answer Bank Structural unemployment rises e. Greater access to the internet leads both potential employers and potential employees to use the internet to list and find jobs
28 In applying the Phillips Curve, if Congress enacts expansionary policies to reduce unemployment, the cost is Multiple Choice O O an increase in the inflation rate. a decrease in the inflation rate. an increase in productivity. a decrease in productivity.
Suppose that = 1° , and the Phillips curve equation for the economy is below: T = 4.5% - 0.2u, If inflation (T,) is 3.5%, then u, is 22.5 %. v tend to decrease If the actual unemployment rate in this economy is equal to 6%, the rate of inflation wi tend to increase be zero remain constant
The sum of frictional, seasonal, and structural unemployment is referred to as the _______________________________. This is the average level of unemployment that is expected to prevail in an economy and in the absence of cyclical unemployment. a. natural rate of unemployment b. “full employment" unemployment rate c. normal rate of unemployment d. none of the above is correct e. a, b, and c are all correct
32 There is a new central bank president who wants low inflation much more than the previous president did. According to the Augmented Phillips Curve Model, in this situation, which of the following would be the most help in keep unemployment from rising in the sort run? a.People know the central bank president's true desires and believe he will stay in office for a long time b.Peoples' wage wage contracts are long-lasting. c.People know the central bank president's true desires and believe that he will only be in office for a short time. d.People think that the central bank president's desires are the same as the previous president's and believe that the new president will be in office for a short time. e.People think that the central bank president's desires are the same as the previous president's and believe that the new president will be in office for a
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Supposed that each of the following rows represents the choice faced by policy makers given the current set of U.S. institutions and technology. What is the opportunity cost of reducing unemployment from 8 percent to 4 percent? Explain your Choice. a) 4 percentage points of unemployment. b) 6 percentage points of unemployment. c) 6 percentage points of inflation. d) 4 percentage points of inflation. Uemployment Inflation 10 3 8 4 6 5 5 7 4 10
Figure 35-6 Use the graph below to answer the following questions. Inflation Rate D A Curve 1 F U/ B Curve 2 Unemployment Rate Refer to Figure 35-6. Curve 2 is the a. long-run Phillips curve. b. short-run aggregate demand curve. c. short-run Phillips curve. d. long-run aggregate demand curve.
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