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

Author Question: Suppose we observe several years of falling inflation rates for an economy. Which of the following ... (Read 57 times)

nelaaney

  • Hero Member
  • *****
  • Posts: 560
Suppose we observe several years of falling inflation rates for an economy. Which of the following would best explain this phenomenon?
 a. Unemployment is probably at the natural rate.
 b. The unemployment rate must be rising.
 c. The unemployment rate must be below the natural rate.
  d. The unemployment rate is probably above the natural rate.
  e. Aggregate output must be increasing.

Question 2

Which of the following would correspond to a movement downward along a short-run Phillips curve?
 a. The aggregate demand curve shifts rightward, moving up along a short-run aggregate supply curve.
  b. The aggregate demand curve shifts leftward, moving down along a short-run aggregate supply curve.
  c. The short-run aggregate supply curve shifts leftward, moving up along the aggregate demand curve.
  d. The money supply curve shifts rightward for a given money demand curve.
 e. Both the money demand and the money supply curves shift leftward.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

b614102004

  • Sr. Member
  • ****
  • Posts: 320
Answer to Question 1

d

Answer to Question 2

b




nelaaney

  • Member
  • Posts: 560
Reply 2 on: Jun 30, 2018
Excellent


pangili4

  • Member
  • Posts: 346
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

Throughout history, plants containing cardiac steroids have been used as heart drugs and as poisons (e.g., in arrows used in combat), emetics, and diuretics.

Did you know?

According to the CDC, approximately 31.7% of the U.S. population has high low-density lipoprotein (LDL) or "bad cholesterol" levels.

Did you know?

Pubic lice (crabs) are usually spread through sexual contact. You cannot catch them by using a public toilet.

Did you know?

In 2006, a generic antinausea drug named ondansetron was approved. It is used to stop nausea and vomiting associated with surgery, chemotherapy, and radiation therapy.

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

For a complete list of videos, visit our video library