This topic contains a solution. Click here to go to the answer

Author Question: What is the Phillips curve? Explain the difference in movements along the Phillips curve and shifts ... (Read 132 times)

big1devin

  • Hero Member
  • *****
  • Posts: 583
What is the Phillips curve? Explain the difference in movements along the Phillips curve and shifts in the Phillips curve, and explain what can cause these movements and shifts.
 
  What will be an ideal response?

Question 2

The Beveridge curve shifted outward during what period?
 
  A) during the Great Depression.
  B) during the Great Moderation.
  C) after January 2008.
  D) between January 2000 and December 2007.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ultraflyy23

  • Sr. Member
  • ****
  • Posts: 312
Answer to Question 1

The Phillips curve is a graph which shows the relationship between the unemployment rate and the inflation rate. Movements along the Phillips curve can be caused by demand shocks, where positive demand shocks cause the inflation rate to increase and the unemployment rate to decrease, and negative demand shocks cause the inflation rate to decrease and the unemployment rate to increase. Shifts in the Phillips curve are caused by changes in the expected inflation rate and by supply shocks. Negative supply shocks and increases in the expected inflation rate cause the Phillips curve to shift up, and positive supply shocks and decreases in the expected inflation rate cause the Phillips curve to shift down.

Answer to Question 2

C





 

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

Did you know?

Asthma cases in Americans are about 75% higher today than they were in 1980.

Did you know?

Automated pill dispensing systems have alarms to alert patients when the correct dosing time has arrived. Most systems work with many varieties of medications, so patients who are taking a variety of drugs can still be in control of their dose regimen.

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

Did you know?

Parkinson's disease is both chronic and progressive. This means that it persists over a long period of time and that its symptoms grow worse over time.

For a complete list of videos, visit our video library