« previous next »

Author Question: In the figure below, draw a short-run Phillips curve and a long-run Phillips curve if the expected ... (Read 160 times)

Brittanyd9008

  • Hero Member
  • *****
  • Posts: 500
on: Jun 29, 2018
In the figure below, draw a short-run Phillips curve and a long-run Phillips curve if the expected inflation rate is 4 percent and the natural unemployment rate is 6 percent.
 
  Explain how the two change in the short run if:
  a. slower growth in aggregate demand causes a recession.
  b. the inflation rate increases.
  c. the natural unemployment rate increases.

Question 2

The marginal cost of an activity ________ as you do more of it.
 
  A) increases
  B) decreases
  C) doesn't change
  D) changes only if the marginal benefit of the activity does not change
  E) changes only if the marginal benefit of the activity changes
Foundations of Microeconomics ¦ Bade, Parkin ¦ 8th Edition
Buy Test-Bank


InfiniteSteez

  • Sr. Member
  • ****
  • Posts: 340
Reply #1 on: Jun 29, 2018
Answer to Question 1

The figure with the Phillips curves is above.
a. There is a downward movement along the short-run Phillips curve.
b. There is an upward movement along the short-run Phillips curve.
c. There is a rightward shift of both the long-run and short-run Phillips curves.

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The senior population grows every year. Seniors older than 65 years of age now comprise more than 13% of the total population. However, women outlive men. In the 85-and-over age group, there are only 45 men to every 100 women.

Did you know?

To maintain good kidney function, you should drink at least 3 quarts of water daily. Water dilutes urine and helps prevent concentrations of salts and minerals that can lead to kidney stone formation. Chronic dehydration is a major contributor to the development of kidney stones.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates's recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

According to research, pregnant women tend to eat more if carrying a baby boy. Male fetuses may secrete a chemical that stimulates their mothers to step up her energy intake.

Did you know?

Signs and symptoms that may signify an eye tumor include general blurred vision, bulging eye(s), double vision, a sensation of a foreign body in the eye(s), iris defects, limited ability to move the eyelid(s), limited ability to move the eye(s), pain or discomfort in or around the eyes or eyelids, red or pink eyes, white or cloud spots on the eye(s), colored spots on the eyelid(s), swelling around the eyes, swollen eyelid(s), and general vision loss.

the comet Encke riding along its pebbly trail of debris (long diagonal line) between the orbits of M the comet Encke riding along its pebbly trail of debris (long diagonal line) between the orbits of M
A long, narrow cobbled street in Old San Juan. A long, narrow cobbled street in Old San Juan.
The air flowing into the engine can be directed through long or short runners for best performance ... The air flowing into the engine can be directed through long or short runners for best performance ...
Relations Between Iconic Memory, Short-Term Memory, and Long-Term Memory Relations Between Iconic Memory, Short-Term Memory, and Long-Term Memory
Titration curve for aspartic acid Titration curve for aspartic acid
Video: EpiPen Animation (Part 2)

For a complete list of videos, visit our video library