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

According to Friedman and Phelps,policymakers face a tradeoff between inflation and unemployment

The equation, ​ Unemployment rate = Natural rate of unemployment - a × (Αctual inflation - Expected inflation), ​

Which of the following is downward-sloping?

Other things the same,in the long run a country that reduces the minimum wage from very high levels will have

Suppose the Fed decreased the growth rate of the money supply.Which of the following would be lower in the long run?

The position of the long-run Phillips curve and the long-run aggregate supply curve both depend on

In the long run,if the Fed increases the growth rate of the money supply,

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

If inflation is greater than expected,then the unemployment rate is

If the Federal Reserve decreases the rate at which it increases the money supply,then unemployment is higher in

If an increase in inflation permanently reduced unemployment,then

In the long run,an increase in the money supply growth rate

Which of the following implies that an increase in the money supply growth rate permanently changes the unemployment rate?

If people correctly anticipate that inflation will fall by 1%,then

The long-run Phillips curve would shift to the right if

In the late 1960s,Milton Friedman and Edmund Phelps argued that

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

The long-run Phillips curve would shift left if

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

If a government redesigned its unemployment insurance programs so that the unemployed had greater incentives to quickly find appropriate jobs,then which of the following curves would shift right?