Author Question: In the figure above, the shift from the short-run Phillips curve SRPC0 and the long-run Phillips ... (Read 49 times)

justinmsk · **on:** Jun 29, 2018

In the figure above, the shift from the short-run Phillips curve SRPC0 and the long-run Phillips curve LRPC0 to the short-run Phillips curve SRPC2 and the long-run Phillips curve LRPC2 is the result of ________ in the expected inflation rate and

________ in the natural unemployment rate.
A) a decrease; a decrease
B) an increase; an increase
C) no change; a decrease
D) an increase; no change
E) a decrease; an increase

Question 2

The labor force participation rate is calculated as:

A) (number of unemployed) (labor force).
B) (number of employed) (adult population).
C) (number of employed + number of unemployed) (labor force).
D) (labor force) (adult population).