Question 1

If expectations about inflation are adaptive,they are ________.

Accepted Answer

A) quick to respond to price shocks 
B) consistent with the notion of sticky prices 
C) based on changes in productivity 
D) all of the above 
E) none of the above 
A) quick to respond to price shocks 
B) consistent with the notion of sticky prices 
C) based on changes in productivity 
D) all of the above 
E) none of the above

Question 2

When wages and prices are completely flexible ________.

Accepted Answer

A) inflation is determined by expected inflation and price shocks 
B) labor hoarding occurs 
C) unemployment is disconnected from the real economy 
D) all of the above 
E) none of the above 
A) inflation is determined by expected inflation and price shocks 
B) labor hoarding occurs 
C) unemployment is disconnected from the real economy 
D) all of the above 
E) none of the above

Question 3

Milton Friedman and Edmund Phelps contributed which insight(s)to Phillips curve analysis?

Accepted Answer

A) that a "realistic" goal of 7% unemployment and 6% to 7% inflation rates could be achieved 
B) that,in the long run,sticky wages and staggered prices prevent unemployment from remaining low 
C) that firms and workers care about real wages 
D) all of the above 
E) none of the above 
A) that a "realistic" goal of 7% unemployment and 6% to 7% inflation rates could be achieved 
B) that,in the long run,sticky wages and staggered prices prevent unemployment from remaining low 
C) that firms and workers care about real wages 
D) all of the above 
E) none of the above

Question 4

On the modern Phillips curve,the initial impact of government policies to stimulate the economy is shown by ________.

Accepted Answer

A) an upward movement along the Phillips curve to a higher inflation rate 
B) an upward shift of the Phillips curve leading to higher inflation rates for any unemployment rate 
C) a downward shift of the Phillips curve leading to lower inflation rates for any unemployment rate 
D) a downward movement along the Phillips curve to higher unemployment rates 
E) none of the above 
A) an upward movement along the Phillips curve to a higher inflation rate 
B) an upward shift of the Phillips curve leading to higher inflation rates for any unemployment rate 
C) a downward shift of the Phillips curve leading to lower inflation rates for any unemployment rate 
D) a downward movement along the Phillips curve to higher unemployment rates 
E) none of the above

Question 5

As wages and prices become more sticky ________.

Accepted Answer

A) the short-run Phillips curve gets flatter 
B) wages become less responsive to unemployment deviations from the natural rate 
C) it becomes easier to differentiate the short-run from the long-run Phillips curve 
D) all of the above 
E) none of the above 
A) the short-run Phillips curve gets flatter 
B) wages become less responsive to unemployment deviations from the natural rate 
C) it becomes easier to differentiate the short-run from the long-run Phillips curve 
D) all of the above 
E) none of the above

If expectations about inflation are adaptive,they are ________.

When wages and prices are completely flexible ________.

Milton Friedman and Edmund Phelps contributed which insight(s)to Phillips curve analysis?

On the modern Phillips curve,the initial impact of government policies to stimulate the economy is shown by ________.

As wages and prices become more sticky ________.

The Policy and Practice of Macroeconomics

Measuring Macroeconomic Data

Aggregate Production and Productivity

Saving and Investment in Closed and Open Economies

Money and Inflation

The Sources of Growth and the Solow Model

Drivers of Growth: Technology, policy, and Institutions

Business Cycles: an Introduction

The Is Curve

Monetary Policy and Aggregate Demand

The Aggregate Demand and Supply Model

Macroeconomic Policy and Aggregate Demand and Supply Analysis

The Financial System and Economic Growth

Financial Crises and the Economy

Fiscal Policy and the Government Budget

Exchange Rates and International Economic Policy

Consumption and Saving

Investment

The Labor Market, employment, and Unemployment

The Role of Expectations in Macroeconomic Policy

Modern Business Cycle Theory

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Exam 11: Aggregate Supply and the Phillips Curve

If expectations about inflation are adaptive,they are ________.

When wages and prices are completely flexible ________.

Milton Friedman and Edmund Phelps contributed which insight(s)to Phillips curve analysis?

On the modern Phillips curve,the initial impact of government policies to stimulate the economy is shown by ________.

As wages and prices become more sticky ________.

The Policy and Practice of Macroeconomics

Measuring Macroeconomic Data

Aggregate Production and Productivity

Saving and Investment in Closed and Open Economies

Money and Inflation

The Sources of Growth and the Solow Model

Drivers of Growth: Technology, policy, and Institutions

Business Cycles: an Introduction

The Is Curve

Monetary Policy and Aggregate Demand

The Aggregate Demand and Supply Model

Macroeconomic Policy and Aggregate Demand and Supply Analysis

The Financial System and Economic Growth

Financial Crises and the Economy

Fiscal Policy and the Government Budget

Exchange Rates and International Economic Policy

Consumption and Saving

Investment

The Labor Market, employment, and Unemployment

The Role of Expectations in Macroeconomic Policy

Modern Business Cycle Theory

Filters