Answer false diff2 topic theshort run relationship

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Unformatted text preview: he Unemployment Rate and Inflation Skill: Conceptual AACSB: Reflective Thinking 32) If the AS curve shifts from year to year, but the AD curve does not, then the Phillips curve would show A) a positive B) relationship between the inflation and unemployment rates. a negative C) relationship between the inflation and unemployment rates. no particular D) relationship between the inflation and unemployment rates. a constant trade-off between the inflation and unemployment rates. Answer: A Diff: 2 Topic: The Short-Run Relationship Between the Unemployment Rate and Inflation Skill: Conceptual AACSB: Reflective Thinking 33) If inflationary expectations decrease, the Phillips curve will A) shift to the B) right. shift to the left. C) become D) vertical. become upward sloping. Answer: B Diff: 2 Topic: The Short-Run Relationship Between the Unemployment Rate and Inflation Skill: Conceptual AACSB: Reflective Thinking 34) The United States began to pull out of a recession in the spring of 1991. Unemployment fell, but inflation did not increase. What was the most likely cause of this? A) Aggregate B) supplywas increasing at a faster rate than aggregate demand. Both aggregate demand an...
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This note was uploaded on 06/02/2013 for the course ECON 130 taught by Professor Meshew during the Fall '13 term at Victoria Wellington.

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