Answer the following: If wages are sticky in the short-run, the short-run Phillips curve is downward sloping. TRUE / FALSEA downward sloping Philips curve implies that output increases as inflation rises. TRUE / FALSEAn increase in worker productivity brought about by the introduction of new technology decrease aggregate demand, since workers will lose their jobs. TRUE / FALSEA decrease in expected inflation both the short-run and the long-run Phillips curves to the left. TRUE / FALSEThe long-run Phillips curve will be upward sloping if persistent high inflation discourages investment in technological improvement TRUE / FALSESince the short-run Philips curve is downward sloping and the long-run Phillips curve is vertical there can never be simultaneous unemployment inflation TRUE / FALSE

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Answered: Answer the following: If wages are…

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter35: The Short-Run Trade-off Between Inflation And Unemployment

Section: Chapter Questions

Problem 3QCMC

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Answer the following:

If wages are sticky in the short-run, the short-run Phillips curve is downward sloping. TRUE / FALSE
A downward sloping Philips curve implies that output increases as inflation rises. TRUE / FALSE
An increase in worker productivity brought about by the introduction of new technology decrease aggregate demand, since workers will lose their jobs. TRUE / FALSE
A decrease in expected inflation both the short-run and the long-run Phillips curves to the left. TRUE / FALSE
The long-run Phillips curve will be upward sloping if persistent high inflation discourages investment in technological improvement TRUE / FALSE
Since the short-run Philips curve is downward sloping and the long-run Phillips curve is vertical there can never be simultaneous unemployment inflation TRUE / FALSE

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