If the Phillips curve represents a ________ relationship, then ...

[ashley]

If the Phillips curve represents a ________ relationship, then the trade-off between unemployment and inflation is permanent.
 
  A) cyclical B) structural C) frictional D) dynamic

Question 2

All other factors held constant, increased growth in aggregate demand will
 
  A) reduce unemployment.
  B) move the economy to a higher point on the short-run Phillips curve.
  C) increase inflation.
  D) All of the above are correct.

Question 3

Robert Shiller posed the following question to workers: Imagine that next year the inflation rate unexpectedly doubles.
 
  How long would it probably take, in these times, before your income is increased enough so that you can afford the same things as you do today? Shiller found that ________ percent of the workers he interviewed reported that it would take several years to restore the purchasing power of their wages or that this power would never be restored.
  A) 25 B) 42 C) 64 D) 81

[essyface1]

Answer to Question 1

B

Answer to Question 2

Many thanks to you.

Answer to Question 3

You are a life saver.

[ashley]

Gracias!

[bigsis44]

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