Author Question: The unemployment compensation program: a. makes recessions more severe. b. makes recession less ... (Read 47 times)

dejastew · **on:** Jun 30, 2018

The unemployment compensation program:
a. makes recessions more severe.
b. makes recession less severe.
c. makes recessions more severe and inflationary episodes less severe.
d. makes recessions less severe and inflationary episodes more severe.
e. has no effect on the severity of recessions and inflationary episodes.

Question 2

The modern view of the Phillips curve suggests that:
a. when inflation is reduced, unemployment will fall below the natural rate.
b. the Phillips curve is an unstable relationship.
c. systematic demand stimulus policies will be unable to affect prices in the long run.
d. there will be a trade-off between inflation and unemployment in the long run.