Foundations of Economics, Student Value Edition Plus MyLab Economics with eText -- Access Card Package (8th Edition)
8th Edition
ISBN: 9780134641843
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 31, Problem 5MCQ
To determine
To find:
The change in the short-run
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
What occurs when the natural unemployment rate increases?
A.
The short-run Phillips curve doesn't change and the long-run Phillips curve shifts rightward.
B.
The long-run Phillips curve doesn't change and the short-run Phillips curve shifts upward.
C.
The long-run and short-run Phillips curves shift rightward and the expected inflation rate rises.
D.
The long-run and short-run Phillips curves shift rightward and the expected inflation rate doesn't change.
Which of the following is downward-sloping?
a.
both the long-run Phillips curve and the long-run aggregate-supply curve
b.
neither the long-run Phillips curve nor the long-run aggregate-supply curve
c.
the short-run Phillips curve, but not the long-run aggregate-supply curve
d.
the long-run Phillips curve, but not the long-run aggregate-supply curve
In the decade through 2020, inflation was consistently low. If people adjusted their inflation expectations to their actual inflation experience, this would
shift the short-run Phillips curve down.
shift the short-run Phillips curve up.
shift the long-run Phillips curve to the left.
Shift the long-run Phillips curve to the right.
Chapter 31 Solutions
Foundations of Economics, Student Value Edition Plus MyLab Economics with eText -- Access Card Package (8th Edition)
Ch. 31 - Prob. 1SPPACh. 31 - Prob. 2SPPACh. 31 - Prob. 3SPPACh. 31 - Prob. 4SPPACh. 31 - Prob. 5SPPACh. 31 - Prob. 6SPPACh. 31 - Prob. 7SPPACh. 31 - Prob. 8SPPACh. 31 - Prob. 9SPPACh. 31 - Prob. 10SPPA
Ch. 31 - Prob. 11SPPACh. 31 - Prob. 1IAPACh. 31 - Prob. 2IAPACh. 31 - Prob. 3IAPACh. 31 - Prob. 4IAPACh. 31 - Prob. 5IAPACh. 31 - Prob. 6IAPACh. 31 - Prob. 7IAPACh. 31 - Prob. 8IAPACh. 31 - Prob. 9IAPACh. 31 - Prob. 10IAPACh. 31 - Prob. 1MCQCh. 31 - Prob. 2MCQCh. 31 - Prob. 3MCQCh. 31 - Prob. 4MCQCh. 31 - Prob. 5MCQCh. 31 - Prob. 6MCQ
Knowledge Booster
Similar questions
- Draw the short-run and long-run Phillips curve. Label three points representing a recessionary gap, and inflationary gap, and full employment output. Identify what happens to the short-run Phillips curve when there is a change in aggregate demand and when there is a change in aggregate supply.arrow_forwardIf the unemployment rate is below the natural rate, then a. inflation is less than expected. As inflation expectations are revised the short-run Phillips curve will shift right. b. inflation is less than expected. As inflation expectations are revised the short-run Phillips curve will shift left. c. inflation is greater than expected. As inflation expectations are revised the short-run Phillips curve will shift left. d. inflation is greater than expected. As inflation expectations are revised the short-run Phillips curve will shift right.arrow_forwardWhich of the following is vertical? a. neither the long-run Phillips curve nor the long-run aggregate supply curve b. both the long-run Phillips curve and the long-run aggregate supply curve c. the long-run Phillips curve, but not the long-run aggregate supply curve d. the long-run Phillips curve, but not the long-run aggregate supply curvearrow_forward
- The long-run Phillips curve will be vertical because: unemployment varies with inflation. unemployment is not affected by the inflation rate. the economy will eventually return to the natural rate of unemployment. people care more about the size of their wage, rather than what it can buy.arrow_forwardAn increase in expected inflation shifts the a. long-run Phillips curve right. b. short-run Phillips curve left. c. short-run Phillips curve right. d. long-run Phillips curve left.arrow_forwardThe long−run Phillips curve is a ________ curve, and moving along the long−run Phillips curve an increase in the inflation rate is associated with ________ in the natural unemployment rate. A. horizontal; no change B. downward sloping; no change C. downward sloping; a decrease D. vertical; no change E. upward sloping; an increasearrow_forward
- Which of the following is correct if there is a favorable supply shock? a. the short-run aggregate supply curve and the short-run Phillips curve both shift right. b. the short-run aggregate supply curve and the short-run Phillips curve both shift left. c. the short-run aggregate supply curve shifts left and the short-run Phillips curve shifts right. d. the short-run aggregate supply curve shifts right and the short-run Phillips curve shifts left.arrow_forwardThe short-run Phillips curve intersects the long-run Phillips curve where A) the actual rate of inflation equals the expected rate of inflation B) the actual rate of unemployment equals the natural rate of employment C) Both A and B are correct D) none of abovearrow_forwardIn the long run, a decrease in the money supply growth rate a. increases inflation and shifts the short-run Phillips curve right. b. increases inflation and shifts the short-run Phillips curve left. c. decreases inflation and shifts the short-run Philips curve right. d. decreases inflation and shifts the short-run Phillips curve left.arrow_forward
- True or false? An increase in inflation expectations shifts the short-run Phillips curve right and has no effect on the long-run Phillips curve.arrow_forwardThe inflation rate is 2 percent a year, and the quantity of money is growing at a pace that will maintain that inflation rate. The natural unemployment rate is 7 percent, and the current unemployment rate is 9 percent. In what direction will the unemployment rate change? How will the short-run Phillips curve and the long-run Phillips curve shift?arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Brief Principles of Macroeconomics (MindTap Cours...EconomicsISBN:9781337091985Author:N. Gregory MankiwPublisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...
Economics
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:Cengage Learning