1) Choose the statement about the long-run
Phillips curve that isincorrect.
It tells us that any expected inflation rate is possible at the natural unemployment rate.
It shows the relationship between inflation and unemployment when the actual inflation rate equals the expected inflation rate.
It is vertical at the natural unemployment rate.
An unexpected increase in aggregate demand shifts the long-run Phillips curve rightward.
3) The currency drain ratio is 0.2 of deposits and the banks' reserve ratio is 0.5
What is the money multiplier?
The money multiplier is______
4) In neoclassical growth theory, ______.
technological advances depend on how many people are looking for a new technology and how intensively they are looking
a population explosion brings diminishing returns to labor, so labor productivity eventually decreases
real GDP per person grows because of the choices people make in the pursuit of profit
growth will stop if technology stops advancing