Classicals argue that an adverse supply shock would a

This preview shows page 4 - 7 out of 16 pages.

18. Classicals argue that an adverse supply shock would (a) raise neither the natural rate of unemployment nor the actual rate of unemployment. (b) raise the actual rate of unemployment, but not the natural rate of unemployment. (c) raise the natural rate of unemployment, but not the actual rate of unemployment. (d) raise both the natural rate of unemployment and the actual rate of unemployment. Answer: D Level of difficulty: 2 Section: 12.1
Image of page 4

Subscribe to view the full document.

188 Abel/Bernanke • Macroeconomics, Fifth Edition 19. Historically, Brazil has suffered higher and more variable rates of inflation than Venezuela. You would expect the short-run aggregate supply curve of Brazil to be _____ than that of Venezuela, and the Phillips curve of Brazil to be _____ than that of Venezuela. 20. The Friedman-Phelps analysis shows that a negative relationship between inflation and unemployment holds 21. The Phillips curve shifted during the 1970s primarily because of 22. Examining data on cyclical unemployment plotted against unanticipated inflation shows (a) a positive relationship. (b) a negative relationship. (c) no significant relationship. (d) a relationship only during the 1960s. Answer: B Level of difficulty: 1 Section: 12.1 23. The Friedman-Phelps analysis suggests that there is a long-term relationship between
Image of page 5
Chapter 12 Unemployment and Inflation 189 24. An analysis of the American economy since 1960 shows that there is a stable relationship between inflation and unemployment
Image of page 6

Subscribe to view the full document.

Image of page 7
You've reached the end of this preview.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern