Question : 50) The shift of the short-run Phillips curve in the : 1240601

50) The shift of the short-run Phillips curve in the figure above is the result of

A) an increase in the natural unemployment rate.

B) a decrease in the natural unemployment rate.

C) an increase in the expected inflation rate.

D) a decrease in the expected inflation rate.

E) a decrease in the actual inflation rate.

51) The short-run Phillips curve shifts when

A) the actual unemployment rate changes and also when the expected unemployment rate changes.

B) the expected unemployment rate changes and also when the expected inflation rate changes.

C) the inflation rate increases and also when the unemployment rate decreases.

D) the natural unemployment rate changes and also when the expected inflation rate changes.

E) the actual inflation rate changes and also when the expected inflation rate changes.

52) Suppose an economy experiences a permanent increase in its natural unemployment rate. This change leads to

A) an upward movement along the short-run Phillips curve.

B) a downward movement along the short-run Phillips curve.

C) a rightward shift of the short-run Phillips curve.

D) a leftward shift of the short-run Phillips curve.

E) no change in the short-run Phillips curve.

53) When the natural unemployment rate increases, the short-run Phillips curve ________ and the long-run Phillips curve ________.

A) shifts rightward; does not shift

B) shifts leftward; does not shift

C) does not shift; shifts leftward

D) shifts rightward; shifts rightward

E) shifts leftward; shifts rightward

54) When the natural unemployment rate increases,

A) both the long-run Phillips curve and the short-run Phillips curve shift rightward.

B) the long-run Phillips curve shifts rightward, and the short-run Phillips curve shifts leftward.

C) the long-run Phillips curve shifts leftward, and the short-run Phillips curve shifts rightward.

D) both the long-run Phillips curve and the short-run Phillips curve shift leftward.

E) there are no shifts of either the long-run Phillips curve or the short-run Phillips curve.

55) When the natural unemployment rate ________, the short-run Phillips curve shifts ________ and the long-run Phillips curve shifts ________.

A) increases; leftward; leftward

B) decreases; rightward; rightward

C) decreases; leftward; rightward

D) increases; rightward; rightward

E) increases; rightward; leftward

56) Both the long-run and the short-run Phillips curves shift if

A) the expected inflation rate changes.

B) expected real GDP changes.

C) the expected unemployment rate changes.

D) the natural unemployment rate changes.

E) the actual inflation rate changes.

57) Which of the following decreases the natural unemployment rate?

A) many young people entering the labor force

B) a recession

C) higher oil prices

D) rapid technological change that increases the demand for labor

E) a decrease in aggregate demand so that fewer workers are needed

58) Changes in which of the following do NOT affect the natural unemployment rate?

A) the quantity of money

B) unemployment benefits

C) structural change

D) the minimum wage

E) the birth rate or other demographic data

59) Due to a “baby bust” in the 1960s and 1970s, fewer people entered the labor market in the 1980s and 1990s. This demographic event ________ the natural unemployment rate thereby shifting the short-run Phillips curve ________ and shifting the long-run Phillips curve ________.

A) increased; rightward; rightward

B) decreased; leftward; leftward

C) increased; rightward; leftward

D) increased; leftward; rightward

E) decreased; rightward; rightward

60) The baby boomers born in the 1940s and 1950s began entering the work force in the 1960s and 1970s . This demographic event ________ the natural unemployment rate, thereby shifting the short-run Phillips curve ________ and shifting the long-run Phillips curve ________.

A) increased; rightward; rightward

B) decreased; leftward; leftward

C) increased; rightward; leftward

D) increased; leftward; rightward

E) decreased; rightward; rightward