Question

The Phillips curve works as a policy tool only when __________. Select the correct answer below:...

The Phillips curve works as a policy tool only when __________.
Select the correct answer below:
the economy is stable
the relationship between wages and prices is not disturbed
the economy avoids price shocks
all of the above

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer.) all of the above

Philips Curve describes the relationship between inflation and unemployment in an economy.  Inflation is defined by increase in the average price level of goods and services over time. When there is inflation, value of money falls. A low inflation rate indicates that average price of goods would not rise as high. Unemployment exist when someone is actively seeking for job but unable to find any despite their willingness to accept the going market wage rate.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
which of the following statements is not a premise associated with the Phillips curve? a) the...
which of the following statements is not a premise associated with the Phillips curve? a) the Phillips curve is applicable in both the short run and long run. b) the Phillips curve can be viewed as a policy menu, a nation could choose low inflation and high unemployment, or high inflation and low unemployment, or anywhere in between c) when unemployment is low, employers have trouble attracting workers, so they raise wages faster inflation in wages soon turns into inflation...
1) Which of the following is an example of a bank diversification? Select the correct answer...
1) Which of the following is an example of a bank diversification? Select the correct answer below: a) a bank specializes in extending auto loans b) a bank holds only mortgages when the housing market is booming c) a bank will not extend loans to borrowers with subprime credit d) a bank holds equal amounts of mortgages, small business loans, and car loans. 2) According to the neoclassical economic model, the economy self-adjusts to clear a recessionary gap through Select...
1. Milton Friedman argued that there is a                a.            permanent downward-sloping Phillips curve.    &
1. Milton Friedman argued that there is a                a.            permanent downward-sloping Phillips curve.                b.           temporary downward-sloping Phillips curve.                c.            temporary upward-sloping Phillips curve.                d.           permanent upward-sloping Phillips curve. 2.            Milton Friedman argued that the economy is not in long-run equilibrium if the expected inflation rate __________ the actual inflation rate.                a.            is less than                b.           is greater than                c.            equals                d.           a and b...
If we use "ceteris paribus" when plotting a demand curve for the price of canned beans,...
If we use "ceteris paribus" when plotting a demand curve for the price of canned beans, what is assumed to be constant? Select the two correct answers below. Select all that apply: The price of a can of beans. The price of a can of tomatoes. The number of cans of beans supplied. The costs of production of a can of beans. The demand curve for a normal good is sloped _______________. The demand curve for an inferior good is...
The aggregate demand curve shows the relationship between the aggregate price level and: A) aggregate productivity....
The aggregate demand curve shows the relationship between the aggregate price level and: A) aggregate productivity. B) the aggregate unemployment rate. C) the aggregate quantity of output demanded by households, businesses, the government, and the rest of the world. D) the aggregate quantity of output demanded by businesses only. 2.When the aggregate price level increases, the purchasing power of many assets falls, causing a decrease in consumer spending. This is known as the _____ effect and is a reason why...
28. Which of the following policies would support the goals of macroeconomic policy? Select the correct...
28. Which of the following policies would support the goals of macroeconomic policy? Select the correct answer below: a policy that reduces payroll taxes with the intention of creating jobs an increase in government spending with the intention of stimulating economic growth a reduction in government spending with the intention of halting the rate of inflation all of the above 30. When there is a particularly significant downturn, where real GDP drops in a severe and sustained way, which economic...
Cyclical unemployment occurs when ___________. Select the correct answer below: real GDP is below the full-employment...
Cyclical unemployment occurs when ___________. Select the correct answer below: real GDP is below the full-employment level real GDP exceeds the full-employment level real GDP equals the full employment level none of the above
1) Compared to several decades ago, the U.S. economy now has _______________. Select the two correct...
1) Compared to several decades ago, the U.S. economy now has _______________. Select the two correct answers below. Select all that apply: a) near zero percent unemployment b) better-educated workers c) greater employment opportunities for individuals d) workers with access to better technologies 2) Economists typically calculate a ___________ by taking the CPI and excluding volatile economic variables. In this way, economists have a better sense of the underlying trends in prices that affect the cost of living. Select the...
Sketch a graph using instructions below and answer the following questions. Label both axes and all...
Sketch a graph using instructions below and answer the following questions. Label both axes and all curves. Draw LRAS and show a potential equilibrium output as Y*. Draw SRAS. Have your AD1 intersect this SRAS significantly below the potential output. Label AD1-SRAS equilibrium as point A. Have your AD2 intersect the same SRAS slightly above the potential output. Label AD2-SRAS equilibrium as point B. Graph:    Refer to the graph in part a): Suppose the economy is currently at point...
1) The pattern of stagflation consists of a __________ shift in the _________ SRAS curve. Select...
1) The pattern of stagflation consists of a __________ shift in the _________ SRAS curve. Select the correct answer below: a) leftward; LRAS b) leftward; SRAS c) rightward; LRAS c) rightward; SRAS 2) If aggregate demand (AD) shifted to the right or left in the Keynesian zone, it will determine the resulting level of ___________. Select the correct answer below: a) real GDP b) potential GDP c) output and unemployment d) inflationary price pressure 3) Long-run changes in aggregate supply,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT