Assessment 10 - 1. According to the short-run Phillips...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1. According to the short-run Phillips curve, if unemployment is 3.2% and inflation is 1.3%, an increase in the inflation rate might result in which of the following? A) an increase in the unemployment rate to 3.4% B) a decrease in the unemployment rate to 3.0% C) a decrease in the demand for labor in the economy D) Both A and C are correct answers. 2. If the Phillips curve represents a "structural relationship", then A) the tradeoff between unemployment and inflation is permanent. B) the tradeoff between unemployment and inflation holds only for the short run. C) the tradeoff between unemployment and inflation holds in the long run, but not in the short run. D) the Phillips curve will be vertical in the long run. 3. Ceteris paribus, in increase in the current or actual rate of inflation will cause A) the short run Phillips curve to shift upward. B) the unemployment rate to decrease (a movement along the short run Phillips curve). C) the long run Phillips curve to shift leftward.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/22/2010 for the course ECONOMICS ECON1002 taught by Professor None during the Spring '10 term at Hong Kong Institute of Vocational Education.

Page1 / 2

Assessment 10 - 1. According to the short-run Phillips...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online