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

In the long run,which of the following would shift the long-run Phillips curve to the right?

For many years country A has had a lower unemployment rate than country B.According to the long-run Phillips curve which of the following could explain this? Country A has

Natural rate of unemployment - a × (Αctual inflation - Expected inflation)=

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 long run,a decrease in money supply growth moves the economy to

The natural rate of unemployment

For a number of years Canada and many European countries have had higher average unemployment rates than the United States.The Phillips curve suggests that these countries

Which of the following models imply that a decrease in the money supply reduces unemployment temporarily but not permanently?

According to classical macroeconomic theory,in the long run

A central bank sets out to reduce unemployment by changing the money supply growth rate.The long-run Phillips curve shows that in comparison to their original rates,this policy will eventually lead to

In responding to the Phillips curve hypothesis,Friedman argued that the Fed can peg the

Which of the following is correct according to the long-run Phillips curve?

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

Which of the following would reduce the natural rate of unemployment?

An economist working for the Central Bank of Fredonia estimates a Phillips curve for Fredonia and reports the following points on the estimated curve. Which of the following statements is correct?

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

If the Federal Reserve increases the rate at which it increases the money supply,then unemployment is lower

If the central bank keeps the money supply growth rate constant,but people raise their inflation expectations by 1 percentage point,then the short-run Phillips curve shifts

More flexible labor markets will shift

If the central bank raises the rate at which it increases the money supply,then in the short run unemployment is

If inflation expectations rise,the short-run Phillips curve shifts