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Question

# 1) Choose the statement about the​ long-run

Phillips curve that is incorrect.

A.

It tells us that any expected inflation rate is possible at the natural unemployment rate.

B.

It shows the relationship between inflation and unemployment when the actual inflation rate equals the expected inflation rate.

C.

It is vertical at the natural unemployment rate.

D.

An unexpected increase in aggregate demand shifts the​ long-run Phillips curve rightward.

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2)

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, ______.

A.

technological advances depend on how many people are looking for a new technology and how intensively they are looking

B.

a population explosion brings diminishing returns to​ labor, so labor productivity eventually decreases

C.

real GDP per person grows because of the choices people make in the pursuit of profit

D.

growth will stop if technology stops advancing

The graph shows the demand for labor curve and
supply of labor curve for an economy. Draw a point at the equilibrium real wage rate and
equilibrium quantity of labor. Label it 1. Now the government imposes a tax on labor income. Draw a curve that shows the effect of this tax. Label
it. Draw points at the new equilibrium quantity of labor to
show: 1) the before-tax wage rate. Label it 2. 2) the after-tax wage rate. Label it 3. When the government imposes a tax on labor
income, the production function occurs and
potential GDP O A. a rightward movement along; increases
0 B. an upward shift of; increases
(3) c. a downward shift of; decreases O D. a leftward movement along; decreases Real wage rate (2009 dollars per hour) 50 150 250 350 450
Labor (billions of hours per year) &gt;&gt;&gt; Draw only the objects specified in the question.

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