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

In the long run,if there is an increase in the money supply growth rate,which of the following curves shifts right?

Suppose the Federal Reserve makes monetary policy more expansionary.In the long run

Milton Friedman argued that the Fed's control over the money supply could be used to peg

Suppose that the central bank unexpectedly increases the growth rate of the money supply.In the short run the effects of this are shown by

Any policy change that reduced the natural rate of unemployment would

Figure 35-6 Use the graph below to answer the following questions. -Refer to Figure 35-6.The money supply growth rate is greatest at

On a given short-run Phillips curve which of the following is held constant?

A politician blames the Federal Reserve for being "soft on unemployment" and claims that a permanently higher money supply growth rate will lead to a permanent reduction in the unemployment rate.The politician's argument is

A policy intended to reduce unemployment by taking advantage of a tradeoff between inflation and unemployment leads to

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,an increase in money supply growth moves the economy to

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

Figure 35-6 Use the graph below to answer the following questions. -Refer to Figure 35-6.Curve 2 is the

If inflation expectations decline,then the short-run Phillips curve shifts

According to the Phillips curve,unemployment and inflation are positively related in

A vertical long-run Phillips curve is consistent with

By about 1973,U.S.policymakers had learned that

Suppose the central bank increases the growth rate of the money supply.In the long run,which of the following is unaffected by this change in policy?

How would a decrease in the natural rate of unemployment affect the long-run Phillips curve?

In the nineteenth century,some countries were on a gold standard so that on average the money supply growth rate was close to zero and expected inflation was more or less constant.For these countries during this time period,we find that increases in actual inflation were generally associated with falling unemployment.These findings

In the long run,if the Fed decreases the rate at which it increases the money supply,