Which of the following statements best describes the relationship between inflation and unemployment in the United States during this time period? O The short-run Phillips curve shifted to the right after actual inflation was higher than expected. O The short-run Phillips curve shifted to the left after actual inflation was lower than expected. O The short-run Phillips curve remained stable. The following graph shows the short-run Phillips curve (SRPC) for the United States in 1961. Drag the dot along the curve, shift the curve, or both to illustrate what happened between 1961 and 1965. SRPC SRPC UNEMPLOYMENT RATE INFLATION RATE

Which of the following statements best describes the relationship between inflation and unemployment in the United States during this time period? O The short-run Phillips curve shifted to the right after actual inflation was higher than expected. O The short-run Phillips curve shifted to the left after actual inflation was lower than expected. O The short-run Phillips curve remained stable. The following graph shows the short-run Phillips curve (SRPC) for the United States in 1961. Drag the dot along the curve, shift the curve, or both to illustrate what happened between 1961 and 1965. SRPC SRPC UNEMPLOYMENT RATE INFLATION RATE

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Do the expected inflation rate and natural unemployment rate remain constant along the short-run Phillips curve? Along the short-run Phillips curve, _______. A. the expected inflation rate rises as the natural unemployment rate rises B. the expected inflation rate is constant and the natural unemployment rate varies C. the expected inflation rate and the natural unemployment rate are constant D. the expected inflation rate rises as the natural unemployment rate falls thank ss
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
Which of the following is correct if there is a favorable supply shock? a. the short-run aggregate supply curve and the short-run Phillips curve both shift right. b. the short-run aggregate supply curve and the short-run Phillips curve both shift left. c. the short-run aggregate supply curve shifts left and the short-run Phillips curve shifts right. d. the short-run aggregate supply curve shifts right and the short-run Phillips curve shifts left.
Which of the following events would be expected to result in an upward shift of the standard Phillips curve? O The USD is appreciating against the Euro O A positive output gap leads to a more positive unexpected inflation O Wages across the country have risen 5% in the last month O Productivity growth in the United States is increasing
Suppose the Phillips curve is represented by the following equation: n - M1 = 0.3 - 3ut. Given this information, what is the natural rate of unemployment in this economy? %3D 30% O 3% O 10% O 0%
What occurs when the natural unemployment rate increases? A. The short-run Phillips curve doesn't change and the long-run Phillips curve shifts rightward. B. The long-run Phillips curve doesn't change and the short-run Phillips curve shifts upward. C. The long-run and short-run Phillips curves shift rightward and the expected inflation rate rises. D. The long-run and short-run Phillips curves shift rightward and the expected inflation rate doesn't change. tha nks
9
Need help with this. Thanks!
Please do fast ASAP fast
5. Consider the standard Phillips curve. Select all the correct statements: (a) A positive aggregate demand shock will lead to an upward shift in the Phillips curve. (b) Changes in short-run output will lead to movements along the Phillips curve. (c) A negative inflation shock will lead to movements along the Phillips curve. (d) A shock to the price of oil will lead to a shift in the Phillips curve. (e) The inflation rate will always be equal to zero when short-run output is equal to zero.
Suppose the Phillips curve is given by the following: 2ut It Where: π = Tt-1 Suppose πt-1 = 0; at year t, authorities decide to keep unemployment rate at 4% forever. a. Compute the rate of inflation for years t+1, t+2 and t+3. b. Suppose half of labor contract of workers has been indexed. What is the new equation for the Phillips curve? Compute the rate of inflation for years t+1, t+2 and t+3. i. π = 0.1 ii. iii. Compared to your answers in problem (a), what can you conclude?
Rate Inflation 7 6 5 4 N 1 0 -1 -2 -3 0 De graph below depicts a short-run Phillips Curve. Move the line as needed to depict a long-run Phillips curve, then answer the question to the right. O 1 2 3 4 5 6 7 Unemployment Rate 8 9 10 The relationship between inflation and unemployment in the short run is different from their relationship in the long run. Which of the following is an important factor in that difference? Inflation Expectations Tax Rates Price Levels Okun's Law