If inflation is greater than expected, then the unemployment rate is
a. above the natural rate. In the long run the short-run Phillips curve will shift right.
b. above the natural rate. In the long run the short-run Phillips curve will shift left.
c. below the natural rate. In the long run the short-run Phillips curve will shift right.
d. below the natural rate. In the long run the short-run Phillips curve will shift left.
c
You might also like to view...
Deflation occurs when
A) there is a sustained increase in the price level. B) there is a one-time increase in the price level. C) there is a decrease in the expected rate of inflation. D) there is a decline in the price level.
An earnings test as it relates to Social Security implies
A. benefits are reduced by some predetermined amount for those who have not reached normal retirement age. B. the amount of money earned during the working life of an individual determines the amount of benefits received. C. family earnings determine the amount of benefits received. D. all of these answer options are correct.
The Framing Gallery frames posters. The Framing Gallery has total fixed costs of $500. The Framing Gallery's average variable cost is $20 and its average total cost is $25. The Framing Gallery is currently framing
A) 5 posters. B) 25 posters. C) 100 posters. D) a number of posters that is indeterminate from this information.
Refer to the graph above. Ongoing inflation would occur if the Fed:
A. Increases the money supply causing AD to shift faster than technological progress shifts AS
B. Increases the money supply causing AD to shift slower than technological progress shifts AS
C. Increases the money supply causing AD to shift as fast as technological progress shifts AS
D. Does not increase the money supply while technological progress is shifting AS