Exam 14: Macroeconomic Policy: Challenges in a Global Economy

When the growth in productivity is ________ the rate of change in wages,inflation is ________,and the level of unemployment at that point is ________ the natural rate of unemployment.

The recession of 2007-2009 was:

If rational expectations theory is correct,the Fed's announced policies will be:

Both ________ on credit by households and ________ interest rates set in motion the events that led to the 2007-2008 financial crisis.

Use the following to answer questions Figure: Understanding Phillips Curves -(Figure: Understanding Phillips Curves)What is the expected inflation rate associated with Phillips curve PC_a?

The unemployment rate during the 2007-2009 recession was not as high as the unemployment rates in the previous two recessions.