Quiz 540

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Quiz 540

Related: Economics, Microeconomics

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Quiz 540

1. In 1968, economist Milton Friedman published a paper criticizing the Phillips curve on the grounds that
a. it seemed to work for wages but not for inflation.
b. monetary policy was ineffective in combating inflation.
c. the Phillips curve did not apply in the long run.
d. Phillips had made errors in collecting his data.

2. In the late 1960s, economist Edmund Phelps published a paper that
a. argued that there was no long-run tradeoff between inflation and unemployment.
b. disproved Friedman’s claim that monetary policy was effective in controlling inflation.
c. showed the optimal point on the Phillips curve was at an unemployment rate of 5 percent and an inflation rate of 2 percent.
d. argued that the Phillips curve was stable and that it would not shift.

3. In the late 1960s, Milton Friedman and Edmund Phelps argued that
a. the trade-off between inflation and unemployment did not apply in the long run This claim is consistent with monetary neutrality in the long run.
b. the trade-off between inflation and unemployment did not apply in the long run. This claim is inconsistent with monetary neutrality in the long run.
c. the trade-off between inflation and unemployment applied in both the short run and the long run. This claim is consistent with monetary neutrality in the long run.
d. the trade-off between inflation and unemployment applied in both the short run and the long run. This claim is inconsistent with monetary neutrality in the long run.

4. Milton Friedman and Edmund Phelps argued in the late 1960s that in the long run the Phillips curve is
a. downward-sloping, which implies that monetary and fiscal policies can influence the level of unemployment in the long run.
b. downward-sloping, which implies that monetary and fiscal policies cannot influence the rate of inflation in the long run.
c. vertical, which implies that monetary and fiscal policies cannot influence the level of unemployment in the long run.
d. vertical, which implies that monetary and fiscal policies cannot influence the rate of inflation in the long run.

5. In the late 1960’s, Milton Friedman and Edmund Phelps argued that a tradeoff between inflation and unemployment
a. existed in the long run and the short run.
b. existed in the long run but not the short run.
c. existed in the short run but not the long run.
d. did not exist.

6. Friedman and Phelps argued
a. that in the long run, monetary growth did not influence those factors that determine the economy’s unemployment rate.
b. that the Phillips curve could be exploited in the long run by using monetary, but not fiscal policy.
c. that the short-run Phillips curve was very steep, but not vertical.
d. that there was neither a short-run nor long-run tradeoff between inflation and unemployment.

7. According to classical macroeconomic theory, in the long run
a. monetary growth affects both real and nominal variables.
b. the only real variable affected by monetary growth is the unemployment rate.
c. a number of factors that affect unemployment are influenced by monetary growth.
d. monetary growth affects nominal but not real variables.

8. Milton Friedman argued that the Fed’s control over the money supply could be used to peg
a. the level or growth rate of a nominal variable, but not the level or growth rate of a real variable.
b. the level of a nominal or real variable, but not the growth rate of a real or nominal variable.
c. the level or growth rate of a real variable, but not the level or growth rate of a nominal variable.
d. both levels and growth rates of both real and nominal variables.

9. Friedman argued that the Fed could use monetary policy to peg
a. nominal exchange rates.
b. the level of real GDP.
c. the rate of unemployment.
d. None of the above is correct.

10. Friedman argued that the Fed could use monetary policy to peg
a. the level of real GDP.
b. the growth rate of real GDP.
c. the rate of unemployment.
d. None of the above is correct.

11. In responding to the Phillips curve hypothesis, Friedman argued that the Fed can peg the
a. unemployment rate.
b. inflation rate.
c. growth rate of real national income.
d. All of the above are correct.

12. According to the long-run Phillips curve, in the long run monetary policy influences
a. both the inflation rate and the unemployment rate.
b. the inflation rate but not the unemployment rate.
c. the unemployment rate but not the inflation rate.
d. neither the unemployment rate nor the inflation rate.

13. According to the Phillips curve, unemployment and inflation are negatively related in
a. the short run and in the long run.
b. the short run, but not in the long run.
c. the long run, but not in the short run.
d. neither the long run nor the short run.

14. According to the Phillips curve, unemployment and inflation are positively related in
a. the short run and in the long run.
b. the short run, but not in the long run.
c. the long run, but not in the short run.
d. neither the long run nor the short run.

15. One way to express the classical idea of monetary neutrality is to draw
a. a downward-sloping short-run Phillips curve.
b. an upward-sloping short-run Phillips curve.
c. a downward-sloping long-run Phillips curve.
d. a vertical long-run Phillips curve.

16. A vertical long-run Phillips curve is consistent with
a. the conclusion of Friedman and Phelps, but it is not consistent with the classical idea of monetary neutrality.
b. the classical idea of monetary neutrality, but it is not consistent with the conclusion of Friedman and Phelps.
c. both the conclusion of Friedman and Phelps and the classical idea of monetary neutrality.
d. neither the conclusion of Friedman and Phelps nor the classical idea of monetary neutrality.

17. By raising aggregate demand more than anticipated, policymakers
a. reduce unemployment for awhile.
b. raise unemployment for awhile.
c. reduce unemployment permanently.
d. None of the above is correct.

18. In the long run, if the Fed increases the growth rate of the money supply,
a. inflation will be higher.
b. unemployment will be lower.
c. real GDP will be higher.
d. All of the above are correct.

19. In the long run, if the Fed decreases the growth rate of the money supply,
a. inflation will be lower.
b. unemployment will be higher.
c. real GDP will be lower.
d. All of the above are correct.

20. If the Federal Reserve increases the rate at which it increases the money supply, then unemployment is lower
a. in the long run and the short run.
b. in the long run but not the short run.
c. in the short run but not the long run.
d. in neither the short run nor the long run.

21. If the Federal Reserve decreases the rate at which it increases the money supply, then unemployment is higher in
a. the long run and the short run.
b. the long run but not the short run.
c. the short run but not the long run.
d. neither the short run nor the long run.

22. If the Federal Reserve increases the growth rate of the money supply, in the long run
a. inflation is higher and the unemployment rate is lower.
b. inflation is higher while the unemployment rate is unchanged.
c. inflation is unchanged while the unemployment rate is lower.
d. None of the above is correct.

23. In the long run, if the Fed decreases the rate at which it increases the money supply,
a. inflation and unemployment will be higher.
b. inflation will be higher and unemployment will be lower.
c. inflation will be lower and unemployment will be higher.
d. None of the above is correct.

24. The natural rate of unemployment
a. is constant over time.
b. varies over time, but can’t be changed by the government.
c. is the unemployment rate that the economy tends to move to in the long run.
d. depends on the rate at which the Fed increases the money supply.

25. The natural rate of unemployment
a. is constant over time.
b. varies over time, but can’t be changed by the government.
c. is the socially desirable rate of unemployment.
d. does not depend on the rate at which the Fed increases the money supply.

26. To say that the natural rate of unemployment changes over time is to say that
a. the short-run Phillips curve shifts over time.
b. the long-run Phillips curve shifts over time.
c. the aggregate demand curve shifts over time.
d. the Federal Reserve influences the natural rate of unemployment over time.

27. Which of the following would reduce the natural rate of unemployment?
a. both an increase in the rate of money growth and increased unemployment compensation
b. an increase in the rate of money growth but not increased unemployment compensation
c. an increase in unemployment compensation but not an increase in the rate of money growth.
d. neither an increase in unemployment compensation nor an increase in the rate of money growth.

28. Which of the following is correct according to the long-run Phillips curve?
a. No government policy, including changes in the money supply growth rate, can change the natural rate of unemployment.
b. Changes in the money supply growth rate are the only means by which government policy can change the natural rate of unemployment.
c. Monetary policy cannot change the natural rate of unemployment, but other government policies can.
d. Monetary policy and other government policies can shift the long-run Phillips curve.

29. Which of the following leads to a lower level of unemployment in the long run?
a. both an increase in the size of the money supply and an increase in the money supply growth rate
b. an increase in the size of the money supply but not an increase in the money supply growth rate
c. an increase in the money supply growth rate, but not an increase in the size of the money supply
d. neither an increase in the size of the money supply nor an increase in the money supply growth rate

30. A policy change that changes the natural rate of unemployment changes
a. neither the long-run Phillips curve nor the long-run aggregate supply curve.
b. both the long-run Phillips curve and the long-run aggregate supply curve.
c. the long-run Phillips curve, but not the long-run aggregate supply curve.
d. the long-run aggregate supply curve, but not the long-run Phillips curve.

31. How would a decrease in the natural rate of unemployment affect the long-run Phillips curve?
a. It would shift the long-run Phillips curve right.
b. It would shift the long-run Phillips curve left.
c. There would be an upward movement along a given long-run Phillips curve.
d. There would be a downward movement along a given long-run Philips curve.

32. Any policy change that reduced the natural rate of unemployment
a. would shift the long-run Phillips curve to the right.
b. would shift the long-run aggregate-supply curve to the right.
c. would be a policy change that impeded the functioning of the labor market.
d. All of the above are correct.

33. Any policy change that reduced the natural rate of unemployment would
a. shift the long-run Phillips curve to the left.
b. shift the long-run aggregate-supply curve to the right.
c. improve the functioning of the labor market.
d. All of the above are correct.

34. Which of the following would shift the long-run Phillips curve to the right?
a. expansionary fiscal policy
b. an increase in the inflation rate
c. increases in unemployment compensation
d. None of the above is correct.

35. For a number of years Canada and many European countries have had higher average unemployment rates than the United States. The Phillips curve suggests that these countries
a. have higher average inflation rates than the United States.
b. have long-run Phillips curves to the right of the United States’.
c. may have less generous unemployment compensation or lower minimum wages.
d. All of the above are consistent with the evidence on unemployment rates.

36. France has a higher natural rate of unemployment than the United States. This suggests that
a. France is at a higher point on its long-run Phillips curve and so has higher inflation than the United States.
b. France is at a lower point on its long-run Phillips curve and so has lower inflation than the United States.
c. France’s Phillips curve is to the left of that of the United States, possibly because they have higher inflation.
d. France’s Phillips curve is to the right of that of the United States, possibly because they have more generous unemployment compensation.

37. Sticky wages leads to a positive relationship between the actual price level and the quantity of output supplied in
a. both the short and long run.
b. the short run, but not the long run.
c. the long run, but not the short run.
d. neither the short nor the long run.

38. In the long run, which of the following would shift the long-run Phillips curve to the right?
a. an increase in the minimum wage
b. an increase in government spending
c. an increase in the money supply
d. a decrease in the money supply

39. Which of the following is correct concerning the long-run Phillips curve?
a. Its position is determined primarily by monetary factors.
b. If it shifts right, long-run aggregate supply shifts right.
c. It cannot be changed by any government policy.
d. Its position depends on the natural rate of unemployment.

40. If efficiency wages became more common,
a. both the long-run Phillips curve and the long-run aggregate supply curve would shift right.
b. both the long-run Phillips curve and the long-run aggregate supply curve would shift left.
c. the long-run Phillips curve would shift right, and the long-run aggregate supply curve would shift left.
d. the long-run Phillips curve would shift left, and the long-run aggregate supply curve would shift right.

Figure 35-5

41. Refer to figure 35-5. In this order, which curve is a long-run Phillips curve and which is a short-run Phillips curve?
a. A, B
b. A, D
c. C, B
d. None of the above is correct.

42. Which of the following is upward-sloping?
a. both the long-run and the short-run Phillips curve
b. neither the long-run nor the short-run Phillips curve
c. the long-run Phillips curve, but not the short-run Phillips curve
d. the short-run Phillips curve, but not the long-run Phillips curve

43. Which of the following is downward-sloping?
a. both the long-run Phillips curve and the long-run aggregate-supply curve
b. neither the long-run Phillips curve nor the long-run aggregate-supply curve
c. the long-run Phillips curve, but not the long-run aggregate-supply curve
d. the short-run Phillips curve, but not the long-run aggregate-supply curve

44. Which of the following is vertical?
a. both the long-run Phillips curve and the long-run aggregate supply curve
b. neither the long-run Phillips curve nor the long-run aggregate supply curve
c. the long-run Phillips curve, but not the long-run aggregate supply curve
d. the long-run Phillips curve, but not the long-run aggregate supply curve

45. Which of the following is downward-sloping?
a. both the long-run Phillips curve and the short-run Phillips curve
b. neither the long-run Phillips curve nor the short-run Phillips curve
c. the long-run Phillips curve, but not the short-run Phillips curve
d. the short-run Phillips curve, but not the long-run Phillips curve

46. Suppose that money supply growth increases. In the long run, this increases employment according to
a. both the long-run Phillips curve and the aggregate demand and aggregate supply model.
b. neither the long-run Phillips curve nor the aggregate demand and aggregate supply model.
c. the long-run Phillips curve, but not the aggregate demand and aggregate supply model.
d. the aggregate demand and aggregate supply model, but not the long-run Phillips curve

47. Suppose the central bank pursues an unexpectedly tight monetary policy. In the short-run the effects of this are shown by
a. moving to the left along the short-run Phillips curve.
b. moving to the right along the short-run Phillips curve.
c. shifting the short-run Phillips curve to the right.
d. shifting the short-run Phillips curve to the left.

48. Suppose that the central bank unexpectedly increases the growth rate of the money supply. In the short run the effects of this are shown by
a. moving to the left along the short-run Phillips curve.
b. moving to the right along the short-run Phillips curve.
c. shifting the short-run Phillips curve to the right.
d. shifting the short-run Phillips curve to the left.

49. A movement to the left along a given short-run Phillips curve could be caused by
a. a reduction in the natural rate of unemployment or expansionary monetary policy.
b. expansionary monetary policy, but not a reduction in the natural rate of unemployment.
c. either a reduction in the natural rate of unemployment or a contractionary monetary policy.
d. contractionary monetary policy, but not a reduction in the natural rate of unemployment.

50. A movement to the right along a given short-run Phillips curve could be caused by
a. an increase in the natural rate of unemployment or expansionary monetary policy.
b. expansionary monetary policy, but not an increase in the natural rate of unemployment.
c. an increase in the natural rate of unemployment or a contractionary monetary policy.
d. contractionary monetary policy, but not an increase in the natural rate of unemployment.

51. The “natural” rate of unemployment is the unemployment rate toward which the economy gravitates in the
a. short run, and the natural rate is constant over time.
b. long run, and the natural rate is constant over time.
c. short run, and the natural rate changes over time.
d. long run, and the natural rate changes over time.

52. The “natural” rate of unemployment is the unemployment rate toward which the economy gravitates in the
a. short run, and the natural rate is the socially optimal rate of unemployment.
b. long run, and the natural rate is the socially optimal rate of unemployment.
c. short run, and the natural rate is not necessarily the socially optimal rate of unemployment.
d. long run, and the natural rate is not necessarily the socially optimal rate of unemployment.

53. If the natural rate of unemployment falls,
a. both the short-run Phillips curve and the long-run Phillips curve shift.
b. only the short-run Phillips curve shifts.
c. only the long-run Phillips curve shifts.
d. neither the short-run nor the long-run Phillips curves shift.

54. If the natural rate of unemployment falls,
a. both the short-run and long-run Phillips curves shift left.
b. the short-run Phillips curve shifts left, the long-run Phillips curve is unchanged.
c. the short-run Phillips curve is unchanged, the long-run Phillips curve shifts right.
d. the short-run and the long-run Phillips curves shift right.

55. A policy that raised the natural rate of unemployment would shift
a. both the short-run and the long-run Phillips curves to the right.
b. the short-run Phillips curve right but leave the long-run Phillips curve unchanged.
c. the long-run Phillips curve right but leave the short-run Phillips curve unchanged.
d. neither the long-run Phillips curve nor the short-run Phillips curve right.

56. More flexible labor markets will shift
a. both the long-run Phillips curve and the long-run aggregate supply curve to the right.
b. both the long-run Phillips curve and the long-run aggregate supply curve to the left.
c. the long-run Phillips curve to the right and the long-run aggregate supply curve to the left.
d. the long-run Phillips curve to the left and the long-run aggregate supply curve to the right.

57. The long-run Phillips curve would shift left if
a. the money supply increased or if the minimum wage was reduced.
b. the money supply increased but not if the minimum wage was reduced.
c. the minimum wage was reduced but not if the money supply increased.
d. None of the above is correct.

58. The position of the long-run Phillips curve and the long-run aggregate supply curve both depend on
a. the natural rate of unemployment and monetary growth.
b. the natural rate of unemployment, but not monetary growth.
c. monetary growth, but not the natural rate of unemployment.
d. neither monetary growth nor the natural rate of unemployment.

59. The position of the long-run Phillips curve depends on
a. the inflation rate and the natural rate of unemployment.
b. the inflation rate but not the natural rate of unemployment.
c. the natural rate of unemployment, but not the inflation rate.
d. neither the natural rate of unemployment nor the inflation rate.

60. If the minimum wage increased, then at any given rate of inflation
a. both output and employment would be higher.
b. neither output nor employment would be higher.
c. output would be higher and unemployment would be lower.
d. output would be lower and unemployment would be higher.

61. If the long-run Phillips curve shifts to the right, then for any given rate of money growth and inflation the economy has
a. higher unemployment and lower output.
b. higher unemployment and higher output.
c. lower unemployment and lower output.
d. lower unemployment and higher output.

62. If the long-run Phillips curve shifts to the left, then for any given rate of money growth and inflation the economy has
a. higher unemployment and lower output.
b. higher unemployment and higher output.
c. lower unemployment and lower output.
d. lower unemployment and higher output.

Figure 35-6
Use the graph below to answer the following questions.

63. Refer to Figure 35-6. Curve 1 is the
a. long-run aggregate supply curve.
b. short-run aggregate supply curve.
c. long-run Phillips curve.
d. short-run Phillips curve.

64. Refer to Figure 35-6. Curve 2 is the
a. long-run Phillips curve.
b. short-run Phillips curve.
c. long-run aggregate demand curve.
d. short-run aggregate demand curve.

65. Refer to Figure 35-6. If the economy starts at C and the money supply growth rate increases, then in the short run the economy moves to
a. B.
b. D.
c. F.
d. None of the above is consistent with an increase in the money supply growth rate.

66. Refer to Figure 35-6. If the economy starts at C and the money supply growth rate decreases, in the short run the economy moves to
a. B.
b. C.
c. F.
d. None of the above is consistent with a decrease in the money supply growth rate.

67. Refer to Figure 35-6. If the economy starts at C and the money supply growth rate increases, in the long run the economy
a. stays at C.
b. moves to B.
c. moves to F.
d. None of the above is consistent wit an increase in the money supply growth rate.

68. Refer to Figure 35-6. The money supply growth rate is greatest at
a. A.
b. B.
c. C.
d. F.

Figure 35-7
Use the two graphs in the diagram to answer the following questions.

69. Refer to Figure 35-7. Starting from C and 3, in the short run an unexpected increase in money supply growth moves the economy to
a. A and 1.
b. B and 2.
c. back to C and 3.
d. D and 4.

70. Refer to Figure 35-7. Starting from C and 3, in the short run, an unexpected decrease in money supply growth moves the economy to
a. A and 1.
b. B and 2.
c. back to C and 3.
d. D and 4.

71. Refer to Figure 35-7. Starting from C and 3, in the long run, an increase in money supply growth moves the economy to
a. A and 1.
b. back to C and 3.
c. D and 4.
d. F and 5.

72. Refer to Figure 35-7. Starting from C and 3, in the long run, a decrease in money supply growth moves the economy to
a. A and 1.
b. back to C and 3.
c. D and 4.
d. F and 5.

73. Refer to Figure 35-7. The economy would move from 3 to 5
a. in the short run if money supply growth increased unexpectedly.
b. in the short run if money supply growth decreased unexpectedly.
c. in the long run if money supply growth increases.
d. in the long run if money supply growth decreases.

74. Refer to Figure 35-7. The economy would move from C to B
a. in the short run if money supply growth increased unexpectedly.
b. in the short run if money supply growth decreased unexpectedly.
c. in the long run if money supply growth increases.
d. in the long run if money supply growth decreases.

Figure 35-8
Use this graph to answer the questions below.

75. Refer to figure 35-8. Suppose the economy starts at 5% unemployment and 3% inflation and expected inflation remains at 3%. Which one of the following points could the economy move to in the short run if the Federal Reserve pursues a more expansionary monetary policy?
a. 7% unemployment and 1% inflation
b. 7% unemployment and 3% inflation
c. 3% unemployment and 5% inflation
d. 3% unemployment and 7% inflation

76. Refer to figure 35-8. If the economy starts at 5% unemployment and 5% inflation then if the Federal Reserve pursues a contractionary monetary policy, in the short run the economy moves to
a. 3% unemployment and 5% inflation. In the long run the economy moves to 5% unemployment and 5% inflation.
b. 3% unemployment and 5% inflation. In the long run the economy moves to 5% unemployment and 3% inflation.
c. 7% unemployment and 3% inflation. In the long run the economy moves to 5% unemployment and 5% inflation.
d. 7% unemployment and 3% inflation. In the long run the economy moves to 5% unemployment and 3% inflation.

77. Refer to figure 35-8. Suppose the economy starts at 5% unemployment and 3% inflation and expected inflation remains at 3%. Which one of the following points could the economy move to in the short run if the Federal Reserve pursues a more contractionary monetary policy?
a. 7% unemployment and 1% inflation
b. 7% unemployment and 3% inflation
c. 3% unemployment and 5% inflation
d. 3% unemployment and 7% inflation

78. Refer to figure 35-8. Suppose the economy starts at 5% unemployment and 3% inflation. If the Federal Reserve pursues an expansionary monetary policy, in the short run the economy moves to
a. 3% unemployment and 5% inflation. In the long run the economy moves to 5% unemployment and 5% inflation.
b. 3% unemployment and 5% inflation. In the long run the economy moves to 3% unemployment and 5% inflation.
c. 7% unemployment and 3% inflation. In the long run the economy moves to 5% unemployment and 5% inflation.
d. 7% unemployment and 3% inflation. In the long run the economy moves to 5% unemployment and 3% inflation.

79. On a given short-run Phillips curve which of the following is held constant?
a. the level of GDP
b. the unemployment rate
c. expected inflation
d. employment

80. On a given short-run Phillips curve which of the following is not held constant?
a. the level of GDP
b. the position of the aggregate-supply curve
c. expected inflation
d. the expected growth rate of the money supply

81. A change in expected inflation shifts
a. the short-run Phillips curve, but not the long run Phillips curve.
b. the long-run Phillips curve, but not the long run Phillips curve.
c. neither the short-run nor the long-run Phillips curve.
d. both the short-run and long-run Phillips curve right.

82. In the long run, if there is an increase in the money supply growth rate, which of the following curves shifts right?
a. the short-run and the long run Phillips curves
b. the short-run but not the long run Phillips curve
c. the long-run but not the short-run Phillips curve
d. neither the short-run nor the long-run Phillips curves

83. An increase in expected inflation shifts
a. the long-run Phillips curve right.
b. the short-run Phillips curve right.
c. neither the short-run nor long-run Phillips curve right.
d. both the short-run and long-run Phillips curve right.

84. A decrease in expected inflation shifts
a. the long-run Phillips curve left.
b. the short-run Phillips curve left.
c. neither the short-run nor long-run Phillips curve left.
d. both the short-run and long-run Phillips curve left.

85. An increase in expected inflation shifts the
a. short-run Phillips curve right.
b. short-run Phillips curve left.
c. long-run Phillips curve right.
d. long-run Phillips curve left.

86. If expected inflation increases, which of the following shifts right?
a. both the short-run and the long-run Phillips curves
b. the short-run but not the long-run Phillips curve
c. the long-run but not the short-run Phillips curve
d. neither the long-run nor the short-run Phillips curve

87. If inflation expectations rise, the short-run Phillips curve shifts
a. right, so that at any inflation rate unemployment is higher in the short run than before.
b. left, so that at any inflation rate unemployment is higher in the short run than before.
c. right, so that at any inflation rate unemployment is lower in the short run than before.
d. left, so that at any inflation rate unemployment is lower in the short run than before.

88. If inflation expectations rise, the short-run Phillips curve shifts
a. right, so that at any unemployment rate inflation is higher in the short run than before.
b. left, so that at any unemployment rate inflation is higher in the short run the before.
c. right, so that at any unemployment rate inflation is lower in the short run than before.
d. left, so that at any unemployment rate inflation is lower in the short run than before.

89. If inflation expectations decline, then the short-run Phillips curve shifts
a. left, so that at any inflation rate unemployment is lower in the short run than before.
b. right, so that at any inflation rate unemployment is lower in the short run than before.
c. right, so that at any inflation rate unemployment is higher in the short run than before.
d. left, so that at any inflation rate unemployment is higher in the short run than before.

90. Friedman and Phelps argued that
a. if peoples’ inflation expectations were fixed, then an increase in the money supply growth rate could not change output in the short or long run.
b. if peoples’ inflation expectations were fixed, then a decrease in the money supply growth rate could raise output and unemployment in the short run.
c. any change in unemployment created by making aggregate demand increase more rapidly is temporary because people eventually revise their inflation expectations.
d. None of the above is correct.

91. The analysis of Friedman and Phelps can be summarized in the following equation where a is a positive number:
a. Unemployment Rate = Natural Rate of Unemployment – a(Actual Inflation – Expected Inflation).
b. Unemployment Rate = Natural Rate of Unemployment – a(Expected Inflation – Actual Inflation).
c. Unemployment Rate = Expected Rate of Inflation – a(Actual Inflation – Expected Inflation).
d. Unemployment Rate = Actual Rate of Inflation – a(Actual Unemployment – Expected Unemployment).

92. Natural rate of unemployment – a Ă— (Αctual inflation – Expected inflation) =
a. Quantity of goods and services demanded.
b. Quantity of goods and services supplied.
c. Unemployment rate.
d. Previous year’s inflation rate.

93. In the equation,

Unemployment rate = Natural rate of unemployment – a Ă— (Αctual inflation – Expected inflation),

the variable a is a parameter that measures how much
a. actual inflation responds to expected inflation.
b. expected inflation responds to actual inflation.
c. the natural rate of unemployment responds to unexpected inflation.
d. actual unemployment responds to unexpected inflation.

94. The equation,

Unemployment rate = Natural rate of unemployment – a Ă— (Αctual inflation – Expected inflation),

a. is the equation of the short-run Phillips curve.
b. implies there can be no stable short-run Phillips curve.
c. reflects the reasoning of Friedman and Phelps.
d. All of the above are correct.

95. The equation,

Unemployment rate = Natural rate of unemployment – a Ă— (Αctual inflation – Expected inflation),

a. is the equation of the short-run Phillips curve.
b. implies the short-run Phillips curve shifts every time there is a change in actual inflation.
c. reflects the reasoning of Samuelson and Solow.
d. All of the above are correct.

96. Assume the analysis of Friedman and Phelps is correct, so that the following equation is valid:

Unemployment rate = Natural rate of unemployment – a Ă— (Αctual inflation – x).

In this equation,
a. a is a parameter that measures how much actual inflation responds to expected inflation.
b. a = 0 at the point of intersection of the short-run and long-run Phillips curves.
c. x is the expected rate of inflation.
d. All of the above are correct.

97. According to Friedman and Phelps, the unemployment rate is above the natural rate when actual inflation
a. is greater than expected inflation.
b. is less than expected inflation.
c. equals expected inflation.
d. low whether its greater than or less than expected.

98. According to Friedman and Phelps’s analysis of the Phillips curve,
a. the unemployment rate will be below its natural rate whenever inflation is negative.
b. the unemployment rate will be below its natural rate whenever inflation is positive.
c. the unemployment rate will be below its natural rate only if inflation is less than expected.
d. the unemployment rate will be below its natural rate only if inflation is greater than expected.

99. According to Friedman and Phelps, the unemployment rate
a. is never below its natural rate.
b. is below its natural rate when actual inflation is greater than expected inflation.
c. is below its natural rate when actual inflation is less than expected inflation.
d. is below its natural rate when actual inflation equals expected inflation.

100. According to Friedman and Phelps, policymakers face a tradeoff between inflation and unemployment
a. only in the long run.
b. only in the short run.
c. in neither the long run nor short run.
d. in both the short run and long run.

101. Friedman and Phelps concluded that
a. in the long run the Phillips curve is downward sloping, which is consistent with classical theory.
b. in the long run the Philips curve is downward sloping, which is inconsistent with classical theory.
c. in the long run the Phillips curve is vertical, which is consistent with classical theory.
d. in the long run the Phillips curve is vertical, which is inconsistent with classical theory.

102. If people eventually adjust their inflation expectations so that in the long run actual and expected inflation are the same, then policymakers
a. can not exploit a tradeoff between inflation and unemployment in either the short or long run.
b. can exploit a tradeoff between inflation and unemployment in the short run but not in the long run.
c. can exploit a tradeoff between inflation and unemployment in both the short run and the long run.
d. can exploit a tradeoff between inflation and unemployment in the long run, but not the short run.

103. A policy intended to reduce unemployment by taking advantage of a tradeoff between inflation and unemployment leads to
a. both higher inflation and higher unemployment in the long run.
b. higher inflation and no change in unemployment in the long run.
c. the same inflation rate and lower unemployment in the long run.
d. higher inflation and lower unemployment in the long run

104. A central bank sets out to reduce unemployment by changing the money supply growth rate. The long-run Phillips curve shows that in comparison to their original rates, this policy will eventually lead to
a. an increase in both the inflation rate and the unemployment rate.
b. an increase in the inflation rate and a reduction in the unemployment rate.
c. no change in either the inflation rate or the unemployment rate.
d. an increase in the inflation rate and no change in the unemployment rate.

105. In the long run, an increase in the money supply
a. leaves prices and unemployment unchanged.
b. raises prices and unemployment.
c. raises prices and leaves unemployment unchanged.
d. leaves prices unchanged and reduces unemployment.

106. The short-run Phillips curve intersects the long-run Phillips curve where
a. the actual rate of inflation equals the expected rate of inflation.
b. the actual rate of unemployment equals the natural rate of unemployment.
c. Both A and B are correct.
d. None of the above is correct.

107. If the economy is at the point where the short-run Phillips curve intersects the long-run Phillips curve,
a. unemployment equals the natural rate and expected inflation equals actual inflation.
b. unemployment is above the natural rate and expected inflation equals actual inflation.
c. unemployment equals the natural rate and expected inflation is greater than actual inflation.
d. None of the above is necessarily correct.

108. Suppose expected inflation and actual inflation are both low, and unemployment is at its natural rate. If the Fed then pursues an expansionary monetary policy, which of the following results would be expected in the short run?
a. The short-run Phillips curve would shift to the left.
b. The short-run Phillips curve would shift to the right.
c. The economy would move up and to the left along a given short-run Phillips curve.
d. The economy would move down and to the right along a given short-run Phillips curve.

109. Suppose expected inflation and actual inflation are both relatively high, and unemployment is at its natural rate. If the Fed then pursues a contractionary monetary policy, which of the following results would be expected in the short run?
a. Expected inflation would exceed actual inflation, and unemployment would exceed its natural rate.
b. Expected inflation would exceed actual inflation, and unemployment would be below its natural rate.
c. Actual inflation would exceed expected inflation, and unemployment would exceed its natural rate.
d. Actual inflation would exceed expected inflation, and unemployment would be below its natural rate.

110. In the long run, a decrease in the money supply growth rate
a. increases inflation and shifts the short-run Phillips curve right.
b. increases inflation and shifts the short-run Phillips curve left.
c. decreases inflation and shifts the short-run Philips curve right.
d. decreases inflation and shifts the short-run Phillips curve left.

111. In the long run, an increase in the money supply growth rate
a. increases inflation and shifts the short-run Phillips curve right.
b. increases inflation and shifts the short-run Phillips curve left.
c. decreases inflation and shifts the short-run Philips curve right.
d. decreases inflation and shifts the short-run Phillips curve left.

112. In the long run, a decrease in the money supply growth rate
a. shifts both the long-run and the short-run Phillips curves right.
b. shifts the long-run Phillips curve left and the short-run Phillips curve right.
c. shifts the long-run Phillips curve right and the short-run Phillips curve left.
d. None of the above is correct.

113. In the long run, an increase in the money supply growth rate
a. shifts both the long-run and the short-run Phillips curves right.
b. shifts the long-run Phillips curve left and the short-run Phillips curve right.
c. shifts the long-run Phillips curve right and the short-run Phillips curve left.
d. None of the above is correct.

114. In the long run, an increase in the money supply growth rate
a. raises expected inflation so the short-run Phillips curve shifts right.
b. raises expected inflation so the short-run Phillips curve shifts left.
c. reduces expected inflation so the short-run Phillips curve shifts left.
d. None of the above is correct.

115. In the long run, a decrease in the money supply growth rate
a. reduces expected inflation so the long-run Phillips curve shifts left.
b. reduces expected inflation so the short-run Phillips curve shifts left.
c. Both A and B are correct.
d. None of the above is correct.

116. In the long run, a decrease in the money supply growth rate
a. shifts the short-run Phillips curve left so inflation returns to its original rate.
b. shifts the short-run Phillips curve left so unemployment returns to its natural rate.
c. Both A and B are correct.
d. None of the above is correct.

117. In the long run a reduction in the money supply growth rate affects
a. the inflation rate and the natural rate of unemployment.
b. the inflation rate but not the natural rate of unemployment.
c. neither the inflation rate nor the natural rate of unemployment.
d. the natural rate of unemployment, but not the inflation rate.

118. In the long run an increase in the money supply growth rate affects
a. the inflation rate and the natural rate of unemployment.
b. the inflation rate, but not the natural rate of unemployment.
c. neither the inflation rate nor the natural rate of unemployment.
d. the natural rate of unemployment, but not the inflation rate.

119. Suppose the Fed decreased the growth rate of the money supply. Which of the following would be lower in the long run?
a. both the natural rate of unemployment and the inflation rate
b. the natural rate of unemployment, but not the inflation rate
c. the inflation rate, but not the natural rate of unemployment
d. neither the natural unemployment rate nor the inflation rate

120. Suppose the Fed increased the growth rate of the money supply. Which of the following would be higher in the long run?
a. both the natural rate of unemployment and the inflation rate
b. the natural rate of unemployment, but not the inflation rate
c. the inflation rate, but not the natural rate of unemployment
d. neither the natural unemployment rate nor the inflation rate

121. Other things the same, if there is an increase in the money supply growth rate that is larger than expected, then in the short run
a. the natural rate of unemployment rises.
b. the natural rate of unemployment falls.
c. the unemployment rate will be above its natural rate.
d. the unemployment rate will be below its natural rate.

122. Suppose the Federal Reserve pursues contractionary monetary policy. In the long run
a. both inflation and the unemployment rate are higher than they were prior to the change in policy.
b. inflation is higher and the unemployment rate is the same as it was prior to the change in policy.
c. inflation is lower and the unemployment rate is lower than it was prior to the change in policy.
d. inflation is lower and unemployment is the same as it was prior to the change in policy.

123. Suppose the Federal Reserve makes monetary policy more expansionary. In the long run
a. both inflation and the unemployment rate are higher than they were prior to the change in policy.
b. inflation is higher and the unemployment rate is the same as it was prior to the change in policy.
c. inflation is lower and the unemployment rate is lower than it was prior to the change in policy.
d. inflation is lower and unemployment is the same as it was prior to the change in policy.

124. If the government reduced the minimum wage and pursued contractionary monetary policy, then in the long run
a. both the unemployment rate and the inflation rate would be lower.
b. the unemployment rate would be lower and the inflation rate would be higher.
c. the unemployment rate would be higher and the inflation rate would be lower.
d. the unemployment rate and the inflation rate would be higher.

125. If the government reduced the minimum wage and pursued expansionary monetary policy, then in the long run
a. both the unemployment rate and the inflation rate would be higher.
b. both the unemployment rate and the inflation rate would be lower.
c. the unemployment rate would be higher and the inflation rate would be lower.
d. the unemployment rate would be lower and the inflation rate would be higher.

126. The economy is in long-run equilibrium when Senator Soldout argues that the Fed should do more to fight unemployment. He argues that if the Fed increased the money supply faster, more workers would find jobs. The Senator’s argument
a. is completely correct.
b. is completely wrong.
c. is true for the short run but not the long run.
d. is true for the long run but not the short run.

127. In the nineteenth century, some countries were on a gold standard so that on average the money supply growth rate was close to zero and expected inflation was more or less constant. For these countries during this time period, we find that increases in actual inflation were generally associated with falling unemployment. These findings
a. are consistent with Friedman and Phelps’s theories, because they argued that when inflation was higher than expected, unemployment would fall.
b. are consistent with Friedman and Phelps’s theories, because they argued that when prices rose unemployment would fall whether actual inflation was higher than expected or not.
c. are inconsistent with Friedman and Phelps’s theories, because they argued that higher inflation would increase unemployment.
d. are inconsistent with Friedman and Phelps’s theories, because they argued that inflation and unemployment are unrelated.

128. Data for the United States traced out an almost perfect Phillips curve for much of the
a. 1960s.
b. 1970s.
c. 1980s.
d. 1990s.

129. In the early 1970s, the short-run Phillips curve shifted
a. rightward as inflation expectations rose.
b. rightward as inflation expectations fell.
c. leftward as inflation expectations rose.
d. leftward as inflation expectations fell.

130. Moving from the late 1960s to 1970-1973,
a. inflation remained high while the unemployment rate was lower than in the late 1960s.
b. inflation remained high while the unemployment rate was higher than in the late 1960s.
c. inflation remained low while the unemployment rate was lower than in the late 1960s.
d. inflation remained low while the unemployment rate was higher than in the late 1960s.

131. By about 1973, U.S. policymakers had learned that
a. there is no trade-off between inflation and unemployment in the short run.
b. there is no trade-off between inflation and unemployment in the long run.
c. Friedman’s analysis of inflation and unemployment had been correct, and Phelps’s analysis of inflation and unemployment had been incorrect.
d. Phelps’s analysis of inflation and unemployment had been correct, and Friedman’s analysis of inflation and unemployment had been incorrect.

132. By about 1973, U.S. policymakers had learned that
a. Friedman and Phelps’s analysis of inflation and unemployment had been correct.
b. the short-run Phillips curve shifts when expectations of inflation change.
c. there is no long-run trade-off between inflation and unemployment.
d. All of the above are correct.

133. If an increase in inflation permanently reduced unemployment, then
a. money would not be neutral and the long-run Phillips curve would slope upward.
b. money would not be neutral and the long-run Phillips curve would slope downward.
c. money would be neutral and the long-run Phillips curve would slope upward.
d. money would be neutral and the long-run Phillips curve would slope downward.

134. An economist working for the Central Bank of Fredonia estimates a Phillips curve for Fredonia and reports the following points on the estimated curve.

actual inflation rate unemployment rate
5% 4%
4% 4.5%
3% 5%
2% 5.5%

Which of the following statements is correct?
a. These points are consistent with the theoretical long-run Phillips curve, but not with the short-run Phillips curve.
b. These points are consistent with the theoretical short-run Phillips curve, but not with the long-run Phillips curve.
c. These points are consistent with both the theoretical short-run and long-run Phillips curves.
d. These points are not consistent with either the theoretical short-run or long-run Phillips curves.

135. A politician blames the Federal Reserve for being “soft on unemployment” and claims that a permanently higher money supply growth rate will lead to a permanent reduction in the unemployment rate. The politician’s argument is
a. consistent with the long-run Phillips curve. Further, the long-run Phillips curve implies that such a policy would not increase inflation.
b. consistent with the long-run Phillips curve. However, the long-run Phillips curve implies that such a policy would increase inflation.
c. inconsistent with the long-run Phillips curve. However, the long-run Phillips curve implies that such a policy would not increase inflation.
d. inconsistent with the long-run Phillips curve. Further, the long-run Phillips curve implies that such a policy would increase inflation.

136. If a government redesigned its unemployment insurance programs so that the unemployed had greater incentives to quickly find appropriate jobs, then which of the following curves would shift right?
a. the long-run Phillips curve and the long-run aggregate supply curve
b. the long-run Phillips curve but not the long-run aggregate supply curve
c. the long-run aggregate supply curve but not the long-run Phillips curve
d. neither the long-run Phillips curve nor the long-run aggregate supply curve

137. Which of the following shifts the long-run Phillips curve left?
a. both an increase in the inflation rate and a decrease in the minimum wage rate
b. an increase in the inflation rate, but not a decrease in the minimum wage rate
c. a decrease in the minimum wage rate, but not an increase in the inflation rate
d. neither a decrease in the minimum wage rate nor an increase in the inflation rate

138. Which of the following implies that an increase in the money supply growth rate permanently changes the unemployment rate?
a. both the long-run aggregate supply curve and the long-run Phillips curve
b. the long-run aggregate supply curve, but not the long-run Phillips curve
c. the long-run Phillips curve, but not the long-run aggregate supply curve
d. neither the long-run Phillips curve nor the long-run aggregate supply curve

139. If people correctly anticipate that inflation will fall by 1%, then
a. the short-run Phillips curve shifts right and unemployment is unchanged.
b. the short-run Phillips curve shifts right and unemployment rises.
c. the short-run Phillips curve shifts left and unemployment is unchanged.
d. the short-run Phillips curve would shift left and unemployment falls.

140. If people anticipate higher inflation, but inflation remains the same then
a. the short-run Phillips curve would shift right and unemployment would rise.
b. the short-run Phillips curve would shift right and unemployment would fall.
c. the short-run Phillips curve would shift left and unemployment would rise.
d. the short-run Phillips curve would shift left and unemployment would fall.

141. If the unemployment rate is below the natural rate, then
a. inflation is less than expected. As inflation expectations are revised the short-run Phillips curve will shift right.
b. inflation is less than expected. As inflation expectations are revised the short-run Phillips curve will shift left.
c. inflation is greater than expected. As inflation expectations are revised the short-run Phillips curve will shift left.
d. inflation is greater than expected. As inflation expectations are revised the short-run Phillips curve will shift right.

142. According to the long-run Phillips curve, in the long run monetary policy influences
a. inflation but not the unemployment rate; this is consistent with classical theory.
b. inflation but not the unemployment rate; this is inconsistent with classical theory.
c. the unemployment rate but not inflation; this is consistent with classical theory.
d. the unemployment rate but not inflation; this is inconsistent with classical theory.

143. Suppose the central bank decreases the growth rate of the money supply. In the short run, this policy change will affect
a. both the unemployment rate and the inflation rate.
b. the unemployment rate but not the inflation rate.
c. the inflation rate but not the unemployment rate.
d. neither the inflation rate nor the unemployment rate.

144. Suppose the central bank increases the growth rate of the money supply. In the long run, which of the following is unaffected by this change in policy?
a. the unemployment rate and the inflation rate
b. the unemployment rate but not the inflation rate
c. the inflation rate but not the unemployment rate
d. neither the inflation rate nor the unemployment rate

145. Consider two countries: Eastland and Westland. Eastland’s long-run Phillips curve sits further to the right than does Westland’s long-run Phillips curve. Eastland and Westland are identical in all other ways. In particular, they have the same money supply growth rates. In the long run, compared to Westland, which of the following will we observe in Eastland?
a. higher unemployment and higher inflation.
b. higher unemployment and the same rate of inflation.
c. lower unemployment and higher inflation.
d. None of the above is correct.

146. Country A has a higher money supply growth rate and a long-run Phillips curve that is farther to the left than country B’s. In the long run as compared to country B, country A will have
a. lower unemployment and higher inflation
b. higher unemployment and higher inflation
c. lower unemployment and lower inflation
d. None of the above is necessarily correct.

147. For many years country A has had a lower unemployment rate than country B. According to the long-run Phillips curve which of the following could explain this? Country A has
a. maintained a higher money supply growth rate.
b. maintained a lower money supply growth rate.
c. a higher minimum wage than country B.
d. a lower minimum wage than country B.

148. Which of the following models imply that a decrease in the money supply reduces unemployment temporarily but not permanently?
a. both the long-run Phillips curve and the aggregate supply and aggregate demand model.
b. the aggregate demand and aggregate supply model, but not the long-run Phillips curve.
c. the long-run Phillips curve, but not the aggregate demand and aggregate supply model.
d. neither the long-run Phillips curve nor the aggregate supply and aggregate demand model.

149. If inflation is less than expected, then the unemployment rate is
a. greater than the natural rate. In the long run the short-run Phillips curve will shift right.
b. greater than the natural rate. In the long run the short-run Phillips curve will shift left.
c. less than the natural rate. In the long run the short-run Phillips curve will shift right.
d. less than the natural rate. In the long run the short-run Phillips curve will shift left.

150. If inflation is greater than expected, then the unemployment rate is
a. above the natural rate. In the long run the short-run Phillips curve will shift right.
b. above the natural rate. In the long run the short-run Phillips curve will shift left.
c. below the natural rate. In the long run the short-run Phillips curve will shift right.
d. below the natural rate. In the long run the short-run Phillips curve will shift left.

151. If the central bank raises the rate at which it increases the money supply, then in the short run unemployment is
a. above its natural rate. The short-run Phillips curve shifts right as the economy moves back to its natural rate of unemployment.
b. above its natural rate. The long-run Phillips curve shifts left as the economy moves back to its natural rate of unemployment.
c. below its natural rate. The short-run Phillips curve shifts right as the economy moves back to its natural rate of unemployment.
d. below its natural rate. The long-run Phillips curve shifts left as the economy moves back to its natural rate of unemployment.

152. If unemployment is above its natural rate, what happens to move the economy to long-run equilibrium?
a. Inflation expectations rise which shifts the short-run Phillips curve to the right.
b. Inflation expectations rise which shifts the short-run Phillips curve to the left.
c. Inflation expectations fall which shifts the short-run Phillips curve to the right.
d. Inflation expectations fall which shifts the short-run Phillips curve to the left.

153. If unemployment is below its natural rate, what happens to move the economy to long-run equilibrium?
a. Inflation expectations rise which shifts the short-run Phillips curve to the right.
b. Inflation expectations rise which shifts the short-run Phillips curve to the left.
c. Inflation expectations fall which shifts the short-run Phillips curve to the right.
d. Inflation expectations fall which shifts the short-run Phillips curve to the left.

154. Other things the same, in the long run a country that reduces the minimum wage from very high levels will have
a. higher unemployment and lower inflation
b. lower unemployment and higher inflation
c. higher unemployment and the same level of inflation
d. lower unemployment and the same level of inflation

155. Prime Minister Emma Bigshot urges passage of a bill to reduce unemployment benefits from very generous levels in her country. She also urges her country’s central bank to raise the rate at which the money supply is increasing. In the long run which, if either, of these policies will reduce the unemployment rate?
a. both reducing the generosity of unemployment benefits and raising the rate at which the money supply is increasing
b. reducing the generosity of unemployment benefits but not raising the rate at which the money supply is increasing
c. raising the rate at which the money supply is increasing, but not reducing the generosity of unemployment benefits
d. neither reducing the generosity of unemployment benefits nor raising the rate at which the money supply is increasing

156. The idea that the long-run Phillips curve is
a. vertical stems from the analysis of Samuelson and Solow.
b. vertical stems from the analysis of Friedman and Phelps.
c. vertical was disproved by the experiment that monetary and fiscal policymakers inadvertently created in the 1970s.
d. downward-sloping can be correct if unemployment responds very quickly to unexpected inflation.

157. The long-run Phillips curve would shift to the left if
a. the money supply growth rate increased or labor markets become more flexible.
b. the money supply growth rate increased but not if labor markets become more flexible.
c. labor markets become more flexible but not if the money supply growth rate increased.
d. None of the above is correct.

158. The long-run Phillips curve would shift to the right if
a. the money supply growth rate decreased or if labor markets become more flexible.
b. the money supply growth rate decreased, but not if labor markets become more flexible.
c. labor markets become more flexible, but not if the money supply growth rate decreased.
d. None of the above is correct.

159. The long-run Phillips curve would shift to the left if
a. the money supply growth rate increased or if effective job-training programs were implemented.
b. the money supply growth rate increased, but not if effective job-training programs were implemented.
c. effective job-training programs were implemented, but not if the money supply growth rate increased.
d. None of the above is correct.

160. If the central bank increases the growth rate of the money supply and initially inflation expectations are unchanged, then in the short run
a. unemployment rises. In the long run the short-run Phillips curve shifts left.
b. unemployment rises. In the long run the short-run Phillips curve shifts right.
c. unemployment falls. In the long run the short-run the Phillips curve shifts left.
d. unemployment falls. In the long run the short-run the Phillips curve shifts right.

161. If inflation expectations rise, the short-run Phillips curve shifts
a. right, so that at any inflation rate output is higher in the short run than before.
b. left, so that at any inflation rate output is higher in the short run than before.
c. right, so that at any inflation rate output is lower in the short run than before.
d. left, so that at any inflation rate output is lower in the short run than before.

162. For a given level of inflation expectations, if the central bank increases the money supply growth rate, then in the short run
a. the economy moves down along the short-run Phillips curve.
b. the economy moves up along the short-run Phillips curve.
c. the Phillips curve shifts right.
d. the Phillips curve shifts left.

163. If the central bank keeps the money supply growth rate constant, but people raise their inflation expectations by 1 percentage point, then the short-run Phillips curve shifts
a. right and the unemployment rate rises.
b. right and the unemployment rate falls.
c. left and the unemployment rate rises.
d. left and the unemployment rate falls.

164. If a central bank increases the money supply growth rate, then in the short run
a. unemployment rises. In the long run the short-run Phillips curve shifts right.
b. unemployment rises. In the long run the short-run Phillips curve shifts left.
c. unemployment falls. In the long run the short-run Phillips curve shifts right.
d. unemployment falls. In the long run the short-run Phillips curve shifts left.

Quiz 540