Given the accelerationist Phillips curve = - 0.7 (U - 5 ) + , ...

[Awilson837]

Given the accelerationist Phillips curve  = - 0.7 (U - 5 ) + , suppose that inflation has increased from 8 percent to 10 percent. If the unemployment rate is 4 percent, then the price shock is ________.
 
  A) 2.7 percent
  B) 0.6 percent
  C) 1.3 percent
  D) 1 percent
  E) none of the above

Question 2

In the equation Y = (1/1  b + v)(a + I + G + X  u), the term (1/1  b + v) is referred to as the
 
  a. level of autonomous expenditures.
  b. autonomous expenditure multiplier.
  c. balanced budget multiplier.
  d. tax multiplier.

[mistyjohnson]

Answer to Question 1

C

Answer to Question 2

B

[Awilson837]

Thank you

[mistyjohnson]

Happy to help you