Exam 10: Output,inflation,and Unemployment: Alternative Views

Assume that there is a positive supply shock,such as an increase in the productivity of labor.What impact will this have on the short-run and long-run Phillips curve? What will be the observed relationship between inflation and unemployment? Provide a graph of the Phillips curve and AD/AS to illustrate.

The natural rate of unemployment

The natural rate of unemployment

According to the theory of hysteresis,a prolonged recession will:

Monetarists assume that suppliers of labor

The tradeoff for monetary policy represented by the Phillips curve is

According to the Keynesian view,the focus of stabilization policies

One would expect a shift down in the Phillips curve if there was a(n)

For each Phillips curve,there

What is meant by the natural rate of unemployment? Is the natural rate of unemployment a constant value? According to the monetarist view,does expansionary monetary policy lower the natural rate of unemployment temporarily or permanently?

The short-run Phillips curve shifts upward whenever:

Assume that the Phillips curve in an economy is $\pi$ = 3 - .5(u - 5),where $\pi$ is the inflation rate and u is the unemployment rate.If unemployment is currently is currently 6 percent,then inflation should be

The most significant cost to a central bank of reducing unemployment is the costs

Labor market regulations in European Union countries

In the long run,according to Monetarists

In the Keynesian view,

In the short run,an increase in the money stock growth rate

Which of the following statements is (are)correct?

Keynesian and classical theories agree that:

Milton Friedman often referred to money as "neutral".What do you think that he meant by this? He also termed the phrase "the natural rate of unemployment".What is natural about the natural rate of unemployment?