Exam 22: The Short Run Trade Off Between Inflation and Unemployment: Shifts in the Phillips Curve the Role of Expectations

Milton Friedman and Edmund Phelps argued in the late 1960s that in the long run the Phillips curve is

According to the long-run Phillips curve,in the long run monetary policy influences

In the late 1960s,economist Edmund Phelps published a paper that

Which of the following leads to a lower level of unemployment in the long run?

The "natural" rate of unemployment is the unemployment rate toward which the economy gravitates in the

A decrease in expected inflation shifts

In the equation, ​ Unemployment rate = Natural rate of unemployment - a × (Αctual inflation - Expected inflation), ​ The variable a is a parameter that measures how much

In 1968,economist Milton Friedman published a paper criticizing the Phillips curve on the grounds that

Suppose expected inflation and actual inflation are both low,and unemployment is at its natural rate.If the Fed then pursues an expansionary monetary policy,which of the following results would be expected in the short run?

In the long run,a decrease in the money supply growth rate

In the long run a reduction in the money supply growth rate affects

On a given short-run Phillips curve which of the following is not held constant?

Which of the following is upward-sloping?

Friedman and Phelps argued

Which of the following is downward-sloping?

If the minimum wage increased,then at any given rate of inflation

Figure 35-8 Use this graph to answer the questions below. -Refer to figure 35-8.If the economy starts at 5% unemployment and 5% inflation then if the Federal Reserve pursues a contractionary monetary policy,in the short run the economy moves to

If the economy is at the point where the short-run Phillips curve intersects the long-run Phillips curve,

Figure 35-7 Use the two graphs in the diagram to answer the following questions. -Refer to Figure 35-7.Starting from C and 3,in the short run an unexpected increase in money supply growth moves the economy to

An increase in expected inflation shifts