a an increase an increase b a decrease an increase c a decrease no change d a

# A an increase an increase b a decrease an increase c

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a. an increase; an increase b. a decrease; an increase c. a decrease; no change d. a decrease; a decrease 12.If the aggregate demand curve shifts rightward less than expected, 13.Which of the following is NOTa cost of high an-ticipated inflation? 14.Higher anticipated inflation a. increases economic growth. b. decreases economic growth. c. decreases unemployment. d. has no effect on economic growth or unemployment.
1 7 8C H A P T E R 1 2 ( 2 8 ) Inflation and Unemployment: The Phillips Curve 15. The short-run Phillips curve shows the relationship between 16. The long-run Phillips curve shows the relationship between Use Figure 12.4 for the next four questions. A rise in the expected inflation rate leads to ____ in the long-run Phillips curve and ____ in the short-run Phillips curve. 17. In the above figure, what is the natural rate of un-employment? 18.Based on Figure 12.4, what is the expected inflation rate? a. 3 percent. b. 4 percent. c. 5 percent. d. 6 percent. 19.If people’s expected inflation rate does not change, for an inflation rate of 5 percent, what is the short-run unemployment rate? 20.After people’s expected inflation rate completely adjusts, for an inflation rate of 5 percent, what is the long-run unemployment rate? 21.A rise in the expected inflation rate leads to ____ in the long-run Phillips curve and ____ in the short-run Phillips curve.