Exam 8: The Phillips Curve, the Natural Rate of Unemployment and Inflation

In the medium run, an increase in the target rate of inflation will cause:

Which of the following explains why the original Phillips curve relation disappeared or, as some economists have remarked, "broke down" in the 1970s?

Economists sometimes refer to the neutrality of changes in nominal money growth. This neutrality implies that changes in nominal money growth have no medium- run effect on which of the following?

Assume that individuals form expectations of inflation according to : n e = 8nt- 1. From 1970 on,the value of 8 for this equation:

Which of the following would be most likely to cause a change in the natural rate of unemployment?

If the Phillips curve equation is ut - ut- 1 = - (ut - un), which of the following will increase the inflation rate by 8 percentage points?

Which of the following has exhibited the most stable relationship over the past four decades in Australia?

Assume that the Phillips curve equation is represented by nt - nt- 1 = (m + z) - aut. An increase in the unemployment rate will cause:

The data suggest that in the European Union countries, the natural rate of unemployment:

When a worker's nominal wage is indexed, the nominal wage is usually automatically adjusted based on movements in which of the following variables?

Assume that the Phillips curve equation is represented by nt - nt- 1 = (m + z) - aut. Given this information, the natural rate of unemployment will be equal to:

The original Phillips curve implied or assumed that:

Data for which country were first used to illustrate the relationship between unemployment and inflation (i.e., the original Phillips curve)?

As of 2012, when was the last year that Australia experienced deflation?

A permanent increase in nominal money growth will, in the medium run, cause which of the following?

Which of the following will cause an increase in the natural rate of unemployment?

For 1970- 2011, the evidence for Australia suggests that the average rate of unemployment required to keep inflation constant has been:

As the proportion of labour contracts that index wages to prices declines, we would expect that:

Assume that expected inflation is based on u e = 8nt- 1. An increase in 8 will cause:

Explain how a decrease in the proportion of contracts that are indexed affects the relationship between changes in the unemployment rate and inflation.