Exam 16: The Short-Run Tradeoff between Inflation and Unemployment

Figure 16-1 -Refer to the Figure 16-1.If the economy starts at c and 1,then in the short run,where does a decrease in aggregate demand move the economy?

In the long run,which of the following will shift the long-run Phillips curve to the right?

Which of the following terms refers to the short-run relationship between inflation and unemployment?

Ultimately,what causes the short-run reduction in unemployment associated with an increase in inflation?

According to Friedman and Phelps,when is the unemployment rate below the natural rate?

If the Bank of Canada announced a policy to reduce inflation and people found it credible,what would happen to the short-run Phillips curve and the sacrifice ratio?

Figure 16-4 -Refer to the Figure 16-4.Along SRPC2,what is the expected rate of inflation?