According to the Phillips curve, a more expansionary macro-policy ...

[craiczarry]

According to the Phillips curve, a more expansionary macro-policy that causes inflation to be greater will:
 a. place downward pressure on prices.
  b. reduce unemployment.
  c. reduce output.
  d. reduce the natural rate of unemployment.

Question 2

What is full employment? What are the different kinds of unemployment? What constitutes the natural (normal) rate of unemployment?

[elyse44]

Answer to Question 1

b

Answer to Question 2

Full employment exists when approximately 95 percent of the civilian labor force is employed. This implies a natural rate of unemployment of approximately 5 percent. The natural rate of unemployment consists of the frictionally and structurally unemployed. The only other type of unemployment is cyclical unemployment.