Exam 9: An Introduction to the Short Run

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Refer to the following figure when answering Figure 9.4: U.S. Inflation 1990-2012 Refer to the following figure when answering   Figure 9.4: U.S. Inflation 1990-2012    (Source: Bureau of Labor Statistics) -Consider Figure 9.4, which shows the annual inflation rate. According to the Phillips curve, the period from about 2001 to 2002 was a period of: (Source: Bureau of Labor Statistics) -Consider Figure 9.4, which shows the annual inflation rate. According to the Phillips curve, the period from about 2001 to 2002 was a period of:

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The Great Depression stimulated ________ to write ________, which is considered to be the birth of modern macroeconomics.

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What three premises does the short-run model operate under?

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Generally speaking, the rate of inflation rises during a recession.

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According to the text, which of the following can be used to approximate potential output? i. Assume a perfectly smooth trend is passing through the quarter-to-quarter movements in the real GDP. ii. Survey leading economists. iii. Gather current data from statistical agencies, such as the Bureau of Economic Analysis.

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