According to the analysis of the short run and long run Phillips curves in the text, a persistent inflation rate of 10% per year:
a. Would keep unemployment below the natural rate
b. Would keep unemployment above the natural rate.
c. Would result in unemployment at the natural rate of unemployment.
d. Is consistent with any of the above scenarios.
c
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
The two key factors that trigger speculative attacks on emerging market currencies are
A) deterioration in bank balance sheets and severe fiscal imbalances. B) deterioration in bank balance sheets and low interest rates abroad. C) low interest rates abroad and severe fiscal imbalances. D) low interest rates abroad and rising asset prices.
Which of the following is true of the labor force participation rate? a. When workers become unemployed, the labor force participation rate declines
b. When the unemployed become discouraged workers, the labor force participation rate declines. c. When workers do not fully use their skills, the labor force participation rate decreases. d. Since the 1950s, the labor force participation rate of women has decreased in the United States. e. The trend toward earlier retirement has increased the labor force participation rate in the United States.
The IMF comprises of 50 member countries including all developed countries, and a few countries of Asia and Latin America
a. True b. False Indicate whether the statement is true or false