macro95ex12 - Chapter 12 Unemployment and Inflation T...

This preview shows page 1 - 4 out of 16 pages.

We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Exploring Economics
The document you are viewing contains questions related to this textbook.
Chapter 27 / Exercise 3
Exploring Economics
Sexton
Expert Verified
Chapter 12Unemployment and InflationTMultiple Choice Questions 1.The origin of the idea of a trade-off between inflation and unemployment was a 1958 article by(a) A.W. Phillips.(b) Edmund Phelps.(c) Milton Friedman.(d) Robert Gordon.Answer: A
Level of difficulty: 1Section: 12.12.Phillips’s research looked at British data on
Level of difficulty: 1Section: 12.13.The negative relationship between unemployment and inflation is known as the
Level of difficulty: 1Section: 12.14.The Phillips curve appeared to fit the data well for the United States in the
Level of difficulty: 1Section: 12.1
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Exploring Economics
The document you are viewing contains questions related to this textbook.
Chapter 27 / Exercise 3
Exploring Economics
Sexton
Expert Verified
Chapter 12Unemployment and Inflation1855.Friedman and Phelps suggested that there should not be a stable relationship between inflation andunemployment, but there should be a stable relationship between(a) anticipated inflation and frictional unemployment.(b) anticipated inflation and cyclical unemployment.(c) unanticipated inflation and frictional unemployment.(d) unanticipated inflation and cyclical unemployment.Answer: D
Level of difficulty: 1Section: 12.16.Milton Friedman and Edmund Phelps questioned
Level of difficulty: 1Section: 12.17.In the extended classical model, an anticipated decrease in the money supply would cause output to_____ and the price level to _____ in the short run.
Level of difficulty: 1Section: 12.18.In the extended classical model, an unanticipated increase in the money supply would cause outputto _____ and the price level to _____ in the short run.
Level of difficulty: 1Section: 12.19.In the extended classical model, an unexpected decrease in aggregate demand would causeunanticipated inflation to be _____ and cyclical unemployment to be _____.(a) positive; negative(b) positive; positive(c) negative; negative(d) negative; positiveAnswer: D
Level of difficulty: 2Section: 12.1
186Abel/Bernanke • Macroeconomics, Fifth Edition

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture