Multiple Choice
(Figure: Demand Shock I) The movement shown in the figure will only reduce the unemployment rate if:
A) actual inflation is equal to expected inflation.
B) actual inflation is lower than expected inflation.
C) actual inflation is higher than expected inflation.
D) there are no expectations concerning inflation.
Correct Answer:
Verified
Correct Answer:
Verified
Q3: Policymakers want to collect 10% more in
Q4: When central bank policies are credible, then
Q5: When the central bank has credible policy,
Q6: In recent years, economists are increasingly favoring
Q7: Why do some economists prefer nominal GDP
Q9: The simple Phillips curve relationship requires a
Q10: During a recession, an economy typically would
Q11: If people form expectations in accordance with
Q12: The slope of the short-run simple Phillips
Q13: Provide an example of expectations that are