Unformatted text preview: 't affect the unemployment rate if A) the economy is operating below capacity. B) the economy is operating at capacity. C) the aggregate supply curve is flat. D) the aggregate demand curve is steep. Answer: B Diff: 2 Topic: The Short-Run Relationship Between the Unemployment Rate and Inflation Skill: Analytic AACSB: Analytic Skills 9) The Phillips curve depicts the relationship between A) output and the price level. B) aggregate C) demand and aggregate expenditures. inflation and D) unemployment. money supply and interest rates. Answer: C Diff: 1 Topic: The Short-Run Relationship Between the Unemployment Rate and Inflation Skill: Definition Refer to the information provided in Figure 14.6 below to answer the questions that follow. Figure 14.6 10) Refer to 14.6. Assuming all shocks to the economy arise from demand changes, which panel represents the shortFigure run relationship between output and the price level? A) A B) B C) C D) D Answer: B Diff: 1 Topic: The Short-Run Relationship Between the Unemployment Rate and Inflation Skill: Conceptual AACSB: Reflective Thinking 11) Refer to Figure 14.6. W...
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- Fall '13
- Macroeconomics, AACSB, Reflective thinking, labor market, Conceptual AACSB