Home→ Economics Mcqs → The Phillips Curve →Refer to Exhibit 6.If People in the economy expect inflation to be 6 percent but inflation turn out to be 3 percent the economy is operating at point ?

If people have rational expectations a monetary policy contraction that is announced and is credible could ?
Refer to Exhibit 6. Suppose the economy is Operating in long-run equilibrium at point E. An unexpected monetary contraction will move the economy in the direction of point ?
Refer to Exhibit 6.Suppose the economy is in long-run equilibrium at point E. A sudden increase in government spending should move the economy in the direction of point ?
Refer to Exhibit 6.If People in the economy expect inflation to be 3 percent and inflation is 3 percent the economy is operating at point ?
A decrease the Price of foreign oil ?
Which of the following would shift the long-run Phillips curve to the right ?
According to the Phillips curve, in the short run, if policy makers choose an expansionary policy to lower the rate of unemployment ?
Along a short-run Phillips curve, ?
The original Phillips curve illustrates ?
If a country’s policy makers were to continuously use expansionary monetary policy in an attempt to hold unemployment below the natural rate the long-run result would be ?
If the sacrifice ratio is five, a reduction in inflation from 7 percent to 3 percent would require ?
Refer to Exhibit 6. Suppose the economy is operating at point (D) As people revise their price expectations ?
Refer to Exhibit 6. Suppose the economy is Operating in long-run equilibrium at point E. In the long run a monetary contraction will move the economy in the direction of point ?
The natural rate hypothesis argues that ?
When actual inflation exceeds expected inflation ?
An increase in expected inflation ?
If, in the long run, people adjust their price expectations so that all prices and incomes move proportionately to an increase in the price level then the long-run Phillips curve ?
The Phillips curve is an extension of the model of aggregate supply and aggregate demand because, in the short run, an increase in aggregate demand increase price and ?
The misery index Which some commentators suggest measures the health of the economy, is ?

Refer to Exhibit 6.If People in the economy expect inflation to be 6 percent but inflation turn out to be 3 percent the economy is operating at point ?

A. H
B. c
C. d
D. F

Correct Answer: F ✔

Last Updated: June 18, 2019