Question 1

The Phillips curve was ________.

Accepted Answer

A) adopted by economic policy teams in the Kennedy and Johnson administrations 
B) influential in efforts to bring the unemployment rate down to low levels 
C) discredited in the 1970s,when both inflation and unemployment were relatively high 
D) all of the above 
E) none of the above 
A) adopted by economic policy teams in the Kennedy and Johnson administrations 
B) influential in efforts to bring the unemployment rate down to low levels 
C) discredited in the 1970s,when both inflation and unemployment were relatively high 
D) all of the above 
E) none of the above

Question 2

If the output gap is constant at minus 2 and the inflation rate has fallen from 6 percent to 5 percent,then next period's short-run aggregate supply curve might be ________.

Accepted Answer

A) π = 5 - 0.5 (13 - 15) 
B) π = 5 + 0.5 (13 - 15) 
C) π = 4 + 0.5 (13 - 15) 
D) π = 5 + 2 (11 - 15) 
E) none of the above 
A) π = 5 - 0.5 (13 - 15) 
B) π = 5 + 0.5 (13 - 15) 
C) π = 4 + 0.5 (13 - 15) 
D) π = 5 + 2 (11 - 15) 
E) none of the above

Question 3

In the 1960s,advocates of the Phillips curve suggested ________.

Accepted Answer

A) an "optimal" goal of 1% unemployment and 1% to 2% inflation rates could be achieved 
B) a "realistic" goal of 7% unemployment and 6% to 7% inflation rates could be achieved 
C) a "nonperfectionist" goal of 3% unemployment and 4% to 5% inflation rates could be achieved 
D) all of the above 
E) none of the above 
A) an "optimal" goal of 1% unemployment and 1% to 2% inflation rates could be achieved 
B) a "realistic" goal of 7% unemployment and 6% to 7% inflation rates could be achieved 
C) a "nonperfectionist" goal of 3% unemployment and 4% to 5% inflation rates could be achieved 
D) all of the above 
E) none of the above

Question 4

On the modern Phillips curve,the beginning of a recession is shown by ________.

Accepted Answer

A) an upward movement along the Phillips curve to a higher inflation rate 
B) an upward shift of the Phillips curve leading to higher inflation rates for any unemployment rate 
C) a downward shift of the Phillips curve leading to lower inflation rates for any unemployment rate 
D) a downward movement along the Phillips curve to higher unemployment rates 
E) none of the above 
A) an upward movement along the Phillips curve to a higher inflation rate 
B) an upward shift of the Phillips curve leading to higher inflation rates for any unemployment rate 
C) a downward shift of the Phillips curve leading to lower inflation rates for any unemployment rate 
D) a downward movement along the Phillips curve to higher unemployment rates 
E) none of the above

Question 5

In the short run ________.

Accepted Answer

A) the more flexible wages and prices are,the more inflation responds to the output gap 
B) the more sticky wages and prices are,the more difficult to tell the difference between the short run and long run aggregate supply curves 
C) if wages and prices are sticky,aggregate output is always at its potential level 
D) all of the above 
E) none of the above 
A) the more flexible wages and prices are,the more inflation responds to the output gap 
B) the more sticky wages and prices are,the more difficult to tell the difference between the short run and long run aggregate supply curves 
C) if wages and prices are sticky,aggregate output is always at its potential level 
D) all of the above 
E) none of the above

The Phillips curve was ________.

If the output gap is constant at minus 2 and the inflation rate has fallen from 6 percent to 5 percent,then next period's short-run aggregate supply curve might be ________.

In the 1960s,advocates of the Phillips curve suggested ________.

On the modern Phillips curve,the beginning of a recession is shown by ________.

In the short run ________.

The Policy and Practice of Macroeconomics

Measuring Macroeconomic Data

Aggregate Production and Productivity

Saving and Investment in Closed and Open Economies

Money and Inflation

The Sources of Growth and the Solow Model

Drivers of Growth: Technology, policy, and Institutions

Business Cycles: an Introduction

The Is Curve

Monetary Policy and Aggregate Demand

The Aggregate Demand and Supply Model

Macroeconomic Policy and Aggregate Demand and Supply Analysis

The Financial System and Economic Growth

Financial Crises and the Economy

Fiscal Policy and the Government Budget

Exchange Rates and International Economic Policy

Consumption and Saving

Investment

The Labor Market, employment, and Unemployment

The Role of Expectations in Macroeconomic Policy

Modern Business Cycle Theory

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Exam 11: Aggregate Supply and the Phillips Curve

The Phillips curve was ________.

If the output gap is constant at minus 2 and the inflation rate has fallen from 6 percent to 5 percent,then next period's short-run aggregate supply curve might be ________.

In the 1960s,advocates of the Phillips curve suggested ________.

On the modern Phillips curve,the beginning of a recession is shown by ________.

In the short run ________.

The Policy and Practice of Macroeconomics

Measuring Macroeconomic Data

Aggregate Production and Productivity

Saving and Investment in Closed and Open Economies

Money and Inflation

The Sources of Growth and the Solow Model

Drivers of Growth: Technology, policy, and Institutions

Business Cycles: an Introduction

The Is Curve

Monetary Policy and Aggregate Demand

The Aggregate Demand and Supply Model

Macroeconomic Policy and Aggregate Demand and Supply Analysis

The Financial System and Economic Growth

Financial Crises and the Economy

Fiscal Policy and the Government Budget

Exchange Rates and International Economic Policy

Consumption and Saving

Investment

The Labor Market, employment, and Unemployment

The Role of Expectations in Macroeconomic Policy

Modern Business Cycle Theory

Filters