If an economy's resources are fully employed,
Answer
a.
a great deal of unemployment will be needed to achieve even a small reduction in inflation.
b.
the aggregate supply curve (and thus the Phillips curve) will be flat.
c.
the aggregate supply curve (and thus the Phillips curve) will be steep.
d.
Both a and c are correct.
.
1 points
Question 42
If the short-run Phillips curve has a very steep slope, the
Answer
a.
structural deficit will fall during recession.
b.
inflation costs of reducing unemployment are relatively low.
c.
inflation costs of reducing unemployment are relatively high.
d.
structural deficit will grow during inflation.
.
1 points
Question 43
The origin of the Phillips curve is the idea that an increase in
Answer
a.
AD will lead to more inflation and lower unemployment.
b.
AD will lead to more inflation and more unemployment.
c.
AS will lead to lower inflation and lower unemployment.
d.
AS will lead to less inflation and higher unemployment.
.
1 points
Question 44
If the fluctuations in the economy's real growth rate from year to year are caused primarily by variations in the rate at which aggregate supply increases, then data would show
Answer
a.
an inverse relationship between inflation and unemployment.
b.
no relationship between inflation and unemployment.
c.
a unicyclic relationship between inflation and unemployment.
d.
a direct relationship between inflation and unemployment.
.
1 points
Question 45
One of the reasons why the Phillips curve is no longer viewed as a "menu" of possible choices available to policy makers is that
Answer
a.
in the 1970s and 1980s much inflation came from the supply side.
b.
analysis indicates there was no such "menu" in the 1960s.
c.
in the 1970s and 1980s there was no inflation at all.
d.
economic theory is unable to explain the curve and, therefore, it has been rejected.
.
1 points
Question 46
Many economists think that, in the long run, the Phillips curve is
Answer
a.
a 45-degree line from the origin.
b.
a vertical line.
c.
the same as the short-run curve.
d.
a horizontal line.
This question was answered on: Sep 21, 2023
Solution~00021147719674.zip (25.37 KB)
This attachment is locked
Our expert Writers have done this assignment before, you can reorder for a fresh, original and plagiarism-free copy and it will be redone much faster (Deadline assured. Flexible pricing. TurnItIn Report provided)
Answered
QUALITYApproved
DATE ANSWEREDSep 21, 2023
EXPERTTutor
ANSWER RATING
We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.
You can also use these solutions:
