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chapter_14

# 7supposetheeconomyisatpointaasuddenincreaseinthepriceo

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Unformatted text preview: lation Skill: Analytic AACSB: Analytic Skills 16) Refer to Figure 14.7. If the economy is on SRPC1, then the expected inflation rate is A) 4% B) 5% C) 6% D) none of the above Answer: B Diff: 2 Topic: The Short-Run Relationship Between the Unemployment Rate and Inflation Skill: Analytic AACSB: Analytic Skills 17) Refer to Figure 14.7. If the economy is on SRPC2, then the expected inflation rate is A) 4% B) 5% C) 6% D) none of the above Answer: C Diff: 2 Topic: The Short-Run Relationship Between the Unemployment Rate and Inflation Skill: Analytic AACSB: Analytic Skills 18) Refer to 14.7. Suppose the economy is initially at Point A. A contractionary fiscal policy moves the economy to Figure Point ________ in the short run. A) E B) B C) C D) D Answer: B Diff: 2 Topic: The Short-Run Relationship Between the Unemployment Rate and Inflation Skill: Analytic AACSB: Analytic Skills 19) Refer to Figure 14.7. Suppose the economy is at Point C. What can possibly move the economy to Point D? A) a leftward shift in the AD curve B) a rightward C) shift in the AD curve a leftward shift in the AS curve D) a rightward shift in the AS curve Ans...
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