« previous next »

Author Question: Distinguish between the short-run and long-run Phillips curves. What will be an ideal ... (Read 70 times)

casperchen82

  • Hero Member
  • *****
  • Posts: 540
on: Jun 29, 2018
Distinguish between the short-run and long-run Phillips curves.
 
  What will be an ideal response?

Question 2

Which of the following is an assumption used when drawing a production possibilities frontier?
 
  i. Human wants and desires are limited to what is available.
  ii. Only two goods are considered.
  iii. The level of technology is fixed and unchanging.
  A) i only
  B) ii only
  C) i and iii
  D) ii and iii
  E) i, ii, and iii


Zebsrer

  • Sr. Member
  • ****
  • Posts: 284
Reply #1 on: Jun 29, 2018
Answer to Question 1

The long-run Phillips curve shows the relationship between inflation and unemployment when the unemployment rate equals the natural rate and the inflation rate equals the expected inflation rate. There is no long-run tradeoff between inflation and unemployment. The short-run Phillips curve, however, shows the relationship between the inflation rate and the unemployment rate when the natural unemployment rate and the expected inflation rate do not change. The short-run Phillips curve is downward sloping, so that it shows a tradeoff between inflation and unemployment.

Answer to Question 2

D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

casperchen82

  • Hero Member
  • *****
  • Posts: 540
Reply #2 on: Jun 29, 2018
Thank you


Zebsrer

  • Sr. Member
  • ****
  • Posts: 284
Reply #3 on: Jun 29, 2018
No problemo


« previous next »
 

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

This year, an estimated 1.4 million Americans will have a new or recurrent heart attack.

Did you know?

Human neurons are so small that they require a microscope in order to be seen. However, some neurons can be up to 3 feet long, such as those that extend from the spinal cord to the toes.

Bururi long-fingered frog (Cardioglossa cyaneospila) Bururi long-fingered frog (Cardioglossa cyaneospila)
Local/long distance cell Signaling Local/long distance cell Signaling
The Rotation Curves of Four Spiral Galaxies The Rotation Curves of Four Spiral Galaxies
Uncover the back down to the waist. Stand at the head to apply lubricant to the back using long ... Uncover the back down to the waist. Stand at the head to apply lubricant to the back using long ...
Survivorship curves "منحنيات البقاء على قيد الحياة" Survivorship curves "منحنيات البقاء على قيد الحياة"
A wave whose wavelength is 0.500 m is traveling down a 500-m long wire whose total mass is 25 ... A wave whose wavelength is 0.500 m is traveling down a 500-m long wire whose total mass is 25 ...
Video: Lower Limb Arteries Animation

For a complete list of videos, visit our video library