In: Economics
If the Phillips curve is usually correct, then an increase in output and a corresponding decrease in unemployment would be unusual.
Select one:
True
False
The correlation between unemployment and inflation can be explained by upward pressure on wages and prices when unemployment is low.
Select one:
True
False
According to the natural rate hypothesis (Friedman and Phelps), in the long run, monetary growth did not influence those factors that determine the economy’s unemployment rate.
Select one:
True
False
A fiscal policy that reduces the amount of cyclical unemployment would affect the long run Phillips curve but not the short-run Phillips curve.
Select one:
True
False
Many economists during the 1960s believed the implications of the Phillips curve, which offered policymakers a menu of possible economic outcomes from which to choose and the choice for expansionary policy would lead to inflationary pressure but reduced unemployment.
Select one:
True
False
Q- If the Phillips curve is usually correct, then an increase in output and a corresponding decrease in unemployment would be unusual.
Answer- True.
Q- The correlation between unemployment and inflation can be explained by upward pressure on wages and prices when unemployment is low.
Answer- True.
Q- According to the natural rate hypothesis (Friedman and Phelps), in the long run, monetary growth did not influence those factors that determine the economy’s unemployment rate.
Answer- True.
Q- A fiscal policy that reduces the amount of cyclical unemployment would affect the long run Phillips curve but not the short-run Phillips curve.
Answer- False.
Q- Many economists during the 1960s believed the implications of the Phillips curve, which offered policymakers a menu of possible economic outcomes from which to choose and the choice for expansionary policy would lead to inflationary pressure but reduced unemployment.
Answer- True.