Exam 34: Inflation, Deflation, and Macro Policy

According to the Phillips curve model, when expectations of inflation increase, the same level of unemployment will be associated with a higher rate of inflation.

If inflation is highly volatile:

A situation in which the price level increases at an extremely high rate is called:

In the equation of exchange, if the velocity of money is constant, a 10 percent increase in the money supply must:

According to the quantity theory of money, velocity:

What is the basic lesson/insight about the nature of inflation that is drawn from the quantity theory of money?

Suppose velocity is constant, but real GDP is not independent of the money supply. If this is the case, a 10 percent increase in the money supply will:

On which side of the economy is the policy focus implied by the quantity theory of money?

If asset prices rise:

The problem portrayed by the short-run Phillips curve is that:

The last time the United States experienced hyperinflation was during:

Refer to the graph shown. The effect of expansionary fiscal policy on inflation and unemployment, with globalization, is best represented by a movement from:

If expected inflation increases, the same level of unemployment will be associated with:

Globalization that allows governments to pursue expansionary policies can be dangerous because it can lead to:

Inflation: