Multiple Choice
Figure 33-6
-If the economy in 34-6 (b) is experiencing an inflationary gap (point g) , the economy's self-correcting process will move unemployment to ____ and inflation to ____.
A) 4 percent; 6 percent
B) 5.5 percent; 5 percent
C) 5.5 percent; 7 percent
D) 5.5 percent; 2 percent
Correct Answer:

Verified
Correct Answer:
Verified
Q2: If the income tax system were indexed,
Q3: Policymakers who believe that the costs of
Q4: If workers and firms forecast inflation accurately,<br>A)the
Q5: What are some of the possible ways
Q6: Most economists agree that the self-correcting mechanism
Q7: Rational expectations are forecasts<br>A)that, while not necessarily
Q8: Figure 33-6<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 33-6
Q9: The Phillips curve assumes that shocks to
Q10: The short-run aggregate supply curve is upward
Q11: Demand-side inflation is the rise in inflation