Question

Eurozone unemployment rose to 10.7 percent. At the same? time, Eurozone inflation unexpectedly rose to 2.7...

Eurozone unemployment rose to 10.7 percent. At the same? time, Eurozone inflation unexpectedly rose to 2.7 percent a?year, up from the previous? month's 2.6 percent a year.

?Source:

Huffington

Post?,

March? 1, 2012

A very high unemployment rate can be accounted for by the Phillips curve model by all of the following

except?_______.

A.

a movement down along the? short-run Phillips curve if there is no change in the natural unemployment rate

B.

a rightward shift of the? long-run Phillips curve if the natural unemployment rate increases

C.

a rightward shift of the? short-run Phillips curve if the natural unemployment rate increases

D.

a movement up along the? long-run Phillips curve if the natural unemployment rate increases

Choose the statement that is incorrect about the Eurozone economy.

A.

The small rise in inflation brings a movement up along the? short-run Phillips curve.

B.

A rise in the expected inflation rate shifts the?short-run Phillips curve rightward.

C.

The tradeoff between inflation and unemployment became worse as the? short-run Phillips curve shifted rightward.

D.

The large increase in the natural unemployment rate shifts the? short-run Phillips curve and the?long-run Phillips curve rightward.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Solution-

1. A very high unemployment rate can be accounted for by the Phillips curve model by all of the following except a movement up along the? long-run Phillips curve if the natural unemployment rate increases.

The correct option is D. a movement up along the long-run Phillips curve if the natural unemployment rate increases.

2. Choose the statement that is incorrect about the Eurozone economy.

The correct option is B. A rise in the expected inflation rate shifts the?short-run Phillips curve rightward.

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
Because the Fed doubled the monetary base in 2008 and because the government has spent billions...
Because the Fed doubled the monetary base in 2008 and because the government has spent billions of dollars bailing out troubled banks, insurance companies, and auto producers, some people are concerned that a serious upturn in the inflation rate will occur, not immediately but in a few years' time. At the same time, massive changes in the global economy might bring the need for structural change in the United States. Structural change__________. A ) Increases the natural unemployment rate and...
Question) If the natural rate of unemployment falls, a. both the short-run Phillips curve and the...
Question) If the natural rate of unemployment falls, a. both the short-run Phillips curve and the long-run Phillips curve shift. b. only the short-run Phillips curve shifts. c. only the long-run Phillips curve shifts. d. neither the short-run nor the long-run Phillips curves shift. Question) If the long-run Phillips curve shifts to the right, then for any given rate of money growth and inflation the economy has a. higher unemployment and lower output. b. higher unemployment and higher output. c....
An increase in the natural unemployment rate shifts both the long-run Phillips curveand the short-run Phillips...
An increase in the natural unemployment rate shifts both the long-run Phillips curveand the short-run Phillips curve rightward. T or F
Which of the following will most likely increase long-run aggregate supply? a. an increase in the...
Which of the following will most likely increase long-run aggregate supply? a. an increase in the rate of investment b. an increase in resource prices c. an increase in the minimum wage d. an increase in the expected inflation rate Suppose the economy is initially in long-run equilibrium and then it experiences a supply shock in the form of sharply higher energy prices. Which of the following is true? a. The short-run aggregate supply curve shifts leftward and the long-run...
When the economy is producing at an output level below the potential output, the unemployment rate...
When the economy is producing at an output level below the potential output, the unemployment rate is above the natural rate of unemployment. the short-run aggregate supply curve will slowly shift to the left when wages start to adjust. the intersection of the short-run aggregate supply curve and the aggregate demand curve is to the right of the long-run aggregate supply curve. the economy might be at the long-run equilibrium. Which of the following is not a determinant of the...
In March 2013 the Fed announced that it might decrease its open market purchases of securities...
In March 2013 the Fed announced that it might decrease its open market purchases of securities by the end of the year. This announcement suggests that the Fed is concerned that a. the unemployment rate will increase. b. the inflation rate will rise. c. the federal funds interest rate will fall too low for the Fed to control it. d. the federal funds interest rate will rise too high for the Fed to control it. In the aggregate supply-aggregate demand...
Suppose that in 2020, the natural rate of unemployment is 5% and the actual rate of...
Suppose that in 2020, the natural rate of unemployment is 5% and the actual rate of unemployment is also 5%. Also inflation equals 4% and people expect inflation to be 4% next year (and all years thereafter). Using the Phillips curve logic, suddenly there is a rise in aggregate demand (maybe due to a jump in investment or government spending, maybe a tax cut.) A. in the short run by 2021, what happens to inflation and unemployment ? Explain why...
Suppose the Bank of Canada unexpectedly raises the inflation target from 2% to 5%. Using the...
Suppose the Bank of Canada unexpectedly raises the inflation target from 2% to 5%. Using the Phillips Curve diagram, explain how this would affect the unemployment rate, in the short run and in the long run. NO HANDWRITINGS PLEASE. I CAN'T READ MOST OF THE HANDWRITINGS, UNFORTUNATELY. THANKS IN ADVANCE FOR TYPING ANSWERS
Suppose the short run Phillips Curve is given by: Inflation = Expected Inflation +.2 -4*Unemployment Rate...
Suppose the short run Phillips Curve is given by: Inflation = Expected Inflation +.2 -4*Unemployment Rate        Assume that initially, people expect zero inflation. Draw the short run Phillips Curve and the long run Phillips Curve on a graph On the graph, represent what would happen in the short run if the government decided to run 4% inflation (setting inflation =0.04). On the graph, represent what would happen in the long run if the government decided to run 4% inflation.
QUESTION 23 An inflation rate above the target rate will result in: a- a movement down...
QUESTION 23 An inflation rate above the target rate will result in: a- a movement down along the monetary policy reaction curve and a movement down the dynamic aggregate demand curve. b- a movement up along the monetary policy reaction curve and a movement up the dynamic aggregate demand curve. c- a movement up along the monetary policy reaction curve and a rightward shift of the dynamic aggregate demand curve. d- a movement up along the monetary policy reaction curve...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT