Ch14Ex - Ch 14 Exam 1 The natural rate of unemployment is A...

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Chapter 27 / Exercise 04
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Ch 14 Exam:1.The natural rate of unemployment is:A)the rate at which there are no inflationary pressures on the economy.B)the equilibrium to which the economy naturally tends.C)zero unemployment.D)the rate that produces worker revolutions.
2.Workers, when asking for wage increases:
3.The 2007–2009 recession was caused by:
4.The decrease in short-run aggregate supply during the Great Recession was caused by:
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Chapter 27 / Exercise 04
Exploring Economics
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Use the following to answer question 5:Figure: Policy Changes in the Short Run5. (Figure: Policy Changes in the Short Run) To move the economy in the short run from point b to point a, Fed policymakers implement _______ monetary policy, thereby accepting _______ to reduce ________.A)contractionary; more unemployment; the rate of inflationB)expansionary; more unemployment; the rate of inflationC)contractionary ; a higher rate of inflation; unemploymentD)expansionary; a higher rate of inflation; unemployment
6.According to the equation for the Phillips curve, if nominal wages and labor productivity both increase by 3%, then the inflation rate _____ and unemployment _____.
7.If wages are sticky, then monetary policy actions:
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8.(Figure: Understanding Phillips Curve Shifts) The graph shows two Phillips curves. Suppose the economy originally faced curve PC1. Which of the following would cause the curve to shift to PC2?
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