Phillip's Curve

The Phillips curve shows what type of relationship between inflation and unemployment?

• negative

• positive

• parabolic

• symmetric

Which of the following causes movement along the short run Phillips curve?

• Any changes to aggregate supply.

• Any changes to aggregate demand.

• Any changes in frictional or structural unemployment

• All of the above

Which of the following causes a shift in the short run Phillips curve?

• Any changes to aggregate supply.

• Any changes to aggregate demand.

• Any changes in frictional or structural unemployment

• All of the above

When drawing the long run Philips Curve, you would show it by

• a horizontal line along the y axis.

• a vertical line along the x axis

• a downwards sloping line

• an upwards sloping line

The y axis when drawing a Philips Curve graph is labeled as the

• unemployment rate

• price level

• real output

• inflation rate

The long run Philips curve is also known as the

• real output rate

• natural rate of inflation

• natural unemployment rate

• real interest rate

What combinations of variables shift the short run aggregate supply curve?

• changes in fiscal policy and changes in output technology

• changes in monetary policy and changes inflationary expectations

• changes in monetary policy and changes in fiscal policy

• Changes in output technology and changes in inflationary expectations

According to the Phillips curve, there is

• a trade-off in inflation and unemployment in the short run, but not the long run.

• a trade-off in inflation and unemployment in both short and long run.

• no trade-off in inflation and unemployment in both short and long run.

• a trade-off in inflation and unemployment in the long run, but not the short run.

What happens to the SRPC when AS falls?

SELECT 3

• rightward shift

• increase in unemployment

• increase in inflation

• none of the above

The LRPC is _______

SELECT 2

• curved

• downward sloping

• vertical

• at the natural rate of unemployment