Exam 17: The Trade Off between Inflation and Unemployment

If workers expect inflation,and negotiate wage increases that exactly match price increases,the result is a

Many economists think that,in the long run,the Phillips curve is

The cure for inflation can come only from changes on the demand side.

Which of the factors below contributed to the collapse of the Phillips curve in the 1970s?

Every year from 1954 to 1984,the U.S.economy was characterized by higher output and lower prices.

If business fluctuations are from demand-side forces,

When deciding on an appropriate course of action to counter a recessionary gap,which of the following do policy makers consider?

Monetarists typically favor strong policy measures to fight recession.

A vocal minority of economists,believers in the theory of rational expectations,insist that

Figure 17-2 -Given the situation in graph (1)in Figure 17-2,what action could be expected from the economy's self-correcting mechanism?

Figure 17-6 -The long-run Phillips curve in Figure 17-6 (b)would include which of the following points?

If strong monetary policy stimulus is used to combat a recessionary gap,what will happen?

The economy's self-correcting mechanism to eliminate a recessionary gap relies on

What is the effect of supply-side inflation on the short-run Phillips curve?

Which of the following led to the collapse of the Phillips Curve?

If aggregate demand grows faster than aggregate supply,the equilibrium price level will rise.

An increase in AD will trigger less inflation under which of the following conditions?

The main reason why the economy's aggregate supply curve slopes upward is that

A decrease in the price of foreign oil will affect the U.S.economy by

If the aggregate supply curve is vertical,then the short-run Phillips curve will