Which of the following would shift the long-run Phillips curve to the left? a) A change in the expected rate of inflation. b) A natural disaster which temporarily disrupts production. c) Improved technology which increases labour demand. d) A rise in the price of imported inputs. Question 7 Which of the following views is not characteristic of the monetarist approach to policies regarding unemployment and inflation? a) To secure generally stable prices, governments should aim to keep the money stock stable over time. b) Government efforts to reduce unemployment have lags, so when they take effect, it may be too late. e) Government efforts to hold unemployment below the natural rate will lead to accelerating inflation if people form adaptive expectations about the inflation rate. d) If the unemployment rate exceeds the natural rate, wage flexibility will return the rate to the natural rate quite quickly. Question 8 Which of the following statements about rational expectations is false? They assume that people take account of all information. b) They assume that, on average, people's forecasts are correct. c) They imply that expected changes in demand have no effects on unemployment or the price level. d) They imply that unexpected changes in demand have long-lasting effects on both
Which of the following would shift the long-run Phillips curve to the left? a) A change in the expected rate of inflation. b) A natural disaster which temporarily disrupts production. c) Improved technology which increases labour demand. d) A rise in the price of imported inputs. Question 7 Which of the following views is not characteristic of the monetarist approach to policies regarding unemployment and inflation? a) To secure generally stable prices, governments should aim to keep the money stock stable over time. b) Government efforts to reduce unemployment have lags, so when they take effect, it may be too late. e) Government efforts to hold unemployment below the natural rate will lead to accelerating inflation if people form adaptive expectations about the inflation rate. d) If the unemployment rate exceeds the natural rate, wage flexibility will return the rate to the natural rate quite quickly. Question 8 Which of the following statements about rational expectations is false? They assume that people take account of all information. b) They assume that, on average, people's forecasts are correct. c) They imply that expected changes in demand have no effects on unemployment or the price level. d) They imply that unexpected changes in demand have long-lasting effects on both
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Transcribed Image Text:Question 6
Which of the following would shift the long-run Phillips curve to the left?
A change in the expected rate of inflation.
b) A natural disaster which temporarily disrupts production.
c) Improved technology which increases labour demand.
A rise in the price of imported inputs.
Question 7
Which of the following views is not characteristic of the monetarist approach to policies
regarding unemployment and inflation?
a) To secure generally stable prices, governments should aim to keep the money stock
stable over time.
b) Government efforts to reduce unemployment have lags, so when they take effect, it
may be too late.
c) Government efforts to hold unemployment below the natural rate will lead to
accelerating inflation if people form adaptive expectations about the inflation rate.
d) If the unemployment rate exceeds the natural rate, wage flexibility will return the rate
to the natural rate quite quickly.
Question 8
Which of the following statements about rational expectations is false?
They assume that people take account of all information.
b) They assume that, on average, people's forecasts are correct.
c) They imply that expected changes in demand have no effects on unemployment or
the price level.
d) They imply that unexpected changes in demand have long-lasting effects on both
unemployment and the price level.
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