In the figure above, the shift from the short-run Phillips curve SRPC0 and the long-run Phillips curve LRPC0 to the short-run Phillips curve SRPC1 and the long-run Phillips curve LRPC1 is the result of ________ in the expected inflation rate and
________ in the natural unemployment rate.
A) a decrease; no change
B) no change; an increase
C) an increase; an increase
D) an increase; no change
E) a decrease; a decrease
B
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How is the concept of present value useful in deciding whether or not to undertake an investment project?
What will be an ideal response?
Bob and Bill can make 16 toys each if they devote 8 working hours in a day. Further, Bob can repair 4 cars and Bill can repair 2 cars, if they devote 8 working hours in a day. What is the opportunity cost of repairing one car to Bill?
a. 10 toys b. 8 toys c. 16 toys d. 12 toys e. 4 toys
Which of the following is an exogenous variable in the Three-Sector-Model?
a. Expected inflation b. Industry risk c. Country risk d. Real risk-free interest rate e. All of the above are exogenous variables.
When the external balance relationship between government spending and money stock is positive, then the
A) internal balance between them must be negative. B) internal balance between them might be negative or positive. C) internal balance between them must also be positive. D) internal balance between them would not exist.