Exam 18: Inflation, the Phillips Curve, and Central Bank Commitment

The original work on the application of the time inconsistency problem in macroeconomics is due to

Time inconsistency means

The fact that private sector economic agents cannot be systematically fooled by economic policymakers is implied by

The rational expectations hypothesis means that

The idea that economic agents do not make systematic errors because they use all information efficiently is called the

A Phillips curve is

In the Friedman-Lucas money surprise model,a surprise increase in money supply growth

In the Friedman-Lucas money surprise model

A predominant view among Federal Reserve officials is that

The Phillips curve shifts because

The Phillips curve shifts because

If the central bank cannot commit,then

The time consistency problem implies that

Application of the time inconsistency problem to monetary policy suggests that,without some mechanism to ensure commitment,the

In the United States,the Phillips curve is not stable in that

The slope of the Phillips curve in the United States was smallest during which period?

A)W. Phillips' study of unemployment and inflation in the United Kingdom specifically looked at the empirical relationship between the unemployment rate and the

In the Friedman-Lucas money surprise model

If the Phillips curve aids in forecasting inflation then

If the central bank cannot commit,then