Exam 13: Aggregate Supply and the Short-Run

If the equation for a country's Phillips curve is $\pi$ = .02 - .8(u - .05),where $\pi$ is the rate of inflation and u is the unemployment rate,what is the short-run inflation rate when unemployment is 4 percent (.04)?

The percentage of a year's real GDP that must be foregone to reduce inflation by 1 percentage point is called the:

Cost-push inflation is the result of:

Illustrate the short-run and long-run impact of an unexpected monetary contraction using both the AD-AS model and the Phillips curve.Assume the economy starts initially at full employment.

According to the natural-rate hypothesis,output will be at the natural rate:

An economy is initially in equilibrium at the natural level.The central bank increases the money supply.Graphically illustrate and explain short-run monetary nonneutrality and long-run monetary neutrality using the AD-AS model.

Both models of aggregate supply discussed in Chapter 13 imply that if the price level is lower than expected,then output ______ natural level of output.

The imperfect-information model assumes that producers find it difficult to distinguish between changes in:

In the sticky-price model,if no firms have flexible prices,the short-run aggregate supply schedule will:

Inflation inertia is represented in the aggregate supply and aggregate demand model by continuing upward shifts in the:

Some firms do not instantly adjust the prices they charge in response to changes in demand for all of the following reasons except:

If price expectations are assumed to be correct,money demand is proportional to income,and net capital flow is infinitely elastic,then the big,comprehensive model corresponds to which of the following special cases?