(Solution) 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. | Snapessays.com


(Solution) 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.


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.

 


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This question was answered on: May 23, 2022

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