Multiple Choice
US data fit the pattern of a short run Phillips Curve better in the 1960s than in the 1970s primarily because
A) government used more demand management in the 1970s than in the 1960s
B) wages were more flexible in the 1960s than in the 1970s
C) oil price shocks in the 1970s shifted the Phillips Curve
D) the concepts of inflationary expectations and the natural rate of unemployment had not been introduced in the 1960s
E) the end of the Vietnam War in the 1970s fundamentally altered the natural rate of unemployment
Correct Answer:
Verified
Correct Answer:
Verified
Q1: In the long run,the Phillips Curve<br>A) slopes
Q2: Which of the following is not a
Q3: An inverse relationship between unemployment and inflation
Q4: Which of the following would most likely
Q5: A tax cut<br>A) pushes the inflation-unemployment coordinates
Q7: Time-inconsistency in monetary policy is most likely
Q8: Consider the following Canadian data. Year Inflation
Q9: A balanced budget rule which precluded a
Q10: The next questions refer to the following.<br>Suppose
Q11: Compared to monetary policy,fiscal policy<br>A) has a