A decrease in the natural unemployment rate shifts the long-run Phillips curve ________ and ________ the short-run Phillips curve. A) rightward; does not shift B) leftward; shifts rightward C) rightward; shifts rightward D) leftward; shifts leftward.
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A decrease in the natural
short-run Phillips curve.
A) rightward; does not shift
B) leftward; shifts rightward
C) rightward; shifts rightward
D) leftward; shifts leftward.
Please type out the correct answer ASAP within 40 50 minutes with proper explanation of the each option given. Thank you.
Step by step
Solved in 2 steps
- True, false or obscure. Justify your conclusion. a) It is desirable to have inflation as close to zero as possible b) High inflation means low unemployment c) The turnover rate of money decreases when nominal interest rates are high d) The probability of the unemployed finding a job is greater if more people change jobs during a given period e) Sticky wages make the Phillips curve steepSuppose the long-run Phillips curve shifts to the right. For any given rate of money growth and inflation, how would unemployment and output change? a. Unemployment would be higher, and output would be lower. b. Unemployment would be higher, and output would be higher. c. Unemployment would be lower, and output would be lower. d. Unemployment would be lower, and output would be higher.(long-run Phillips Curve) Suppose the economy is at point D on the long-run Phillips curve shown in the accompanying exhibit. If that inflation rate is unacceptably high, how can policy makers get the inflation rate down? Would rational expectations help or hinder their efforts?
- Explain all options, please. The modern view of the Phillips curve suggests that a.when inflation is less than anticipated, unemployment will fall below the natural rate. b.when inflation is steady, actual unemployment will equal the natural rate of unemployment. c.systematic demand stimulus policies will be unable to affect prices in the long run. d.there will be a trade-off between inflation and unemployment in the long run.For this question, assume that the Phillips curve equation is represented by the following equation: πt - πt-1 = (m + z) - αut. A reduction in the unemployment rate will cause A) a reduction in the markup over labor costs (i.e., a reduction in m). B) an increase in the markup over labor costs. C) an increase in the inflation rate over time. D) a decrease in the inflation rate over time. E) none of the aboveWhich of the following statements is correct? A) The short run Phillips curve is negatively sloped B) There is no inflation when the unemployment rate is zero C) The Phillips curve shows a negative correlation between the unemployment rate and GDP growth D) The short run Phillips curve is positively sloped
- A movement to the right along a given short-run Phillips Curve could be caused by? Answer only if ? correct. Type answer only. ISince the short-run Philips curve is downward sloping and the long-run Phillips curve is vertical there can never be simultaneous unemployment inflation TRUE / FALSETrue or false? An increase in inflation expectations shifts the short-run Phillips curve right and has no effect on the long-run Phillips curve.
- Consider a typical downward sloping short run Phillips curve. Which combination of events could cause 1) a movement along the particular short run Phillips curve (SRPC) to the "south-east" and then followed by 2) a leftward shift of the entire SRPC? Group of answer choices a)Decrease in government spending followed by a rightward shift in the short-run aggregate supply curve. b) Increase in money supply followed by a rightward shift in the short-run aggregate supply curve. c)Decrease in government spending followed by a leftward shift in the short-run aggregate supply curve. d)Increase in government spending followed by a rightward shift in the short-run aggregate supply curve.Part a.: The Phillips curve slopes (downward/upward), since a more positive output gap is associated with a (higher/lower) level of unexpected inflation. The labor market Phillips Curve slopes (downward/upward), since a more positive output gap is associated with a (higher/lower) level of unemployment. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.What is true along the long-run Phillips curve? A. A labor shortage exists. B. A tradeoff exists between the inflation rate and the unemployment rate. C. The economy is at full employment. D. The inflation rate equals the expected inflation rate and any unemployment rate is possible. th aht thanks
