Question :
Refer to the information provided in Figure 14.6 below to : 1381493
Refer to the information provided in Figure 14.6 below to answer the questions that follow.
Figure 14.6
10) Refer to Figure 14.6. Panel B represents the typical shape of the
A) short-run Phillips curve.
B) long-run Phillips curve.
C) short-run aggregate supply curve.
D) long-run aggregate supply curve.
11) Refer to Figure 14.6. Panel A represents the typical shape of the
A) short-run Phillips curve.
B) long-run Phillips curve.
C) short-run aggregate supply curve.
D) long-run aggregate supply curve.
12) Refer to Figure 14.6. Panel C represents the typical shape of the
A) short-run Phillips curve.
B) long-run Phillips curve.
C) short-run aggregate supply curve.
D) short-run aggregate demand curve.
Refer to the information provided in Figure 14.7 below to answer the questions that follow.
Figure 14.7
13) Refer to Figure 14.7. The unemployment rate at U1
A) is greater than the natural rate.
B) is lower than the natural rate.
C) equals the natural rate.
D) equals zero.
14) Refer to Figure 14.7. If the natural unemployment rate equals 4%, the unemployment rate at U0 could be
A) 3%.
B) 4%.
C) 5%.
D) 6%.
15) Refer to Figure 14.7. Suppose the economy is at Point A, a decrease in money supply will move the economy to Point ________ in the short run.
A) E
B) B
C) C
D) D
16) Refer to Figure 14.7. If the economy is on SRPC3, then the expected inflation rate is
A) 4%.
B) 5%.
C) 6%.
D) none of the above
17) Refer to Figure 14.7. The expected inflation rate is 6% if the economy is
A) on SRPC1.
B) on SRPC2.
C) on SRPC3.
D) above SRPC2.
18) Refer to Figure 14.7. Suppose the economy is initially at Point A. An expansionary fiscal policy moves the economy to Point ________ in the short run.
A) E
B) B
C) C
D) D
19) Refer to Figure 14.7. Suppose the economy is at Point B. What can possibly move the economy to Point E?
A) a leftward shift in the AD curve
B) a rightward shift in the AD curve
C) a leftward shift in the AS curve
D) a rightward shift in the AS curve
20) Refer to Figure 14.7. An expansionary fiscal policy followed by a leftward shift in the AS curve could move the economy from Point A to Point ________, and then to Point ________.
A) D; C
B) B; E
C) C; D
D) E; B
21) Refer to Figure 14.7. An contractionary monetary policy followed by a rightward shift in the AS curve could move the economy from Point A to Point ________, and then to Point ________.
A) D; C
B) B; E
C) C; D
D) E; B
22) Refer to Figure 14.7. If the economy is at Point A, a sudden decrease in the price of oil without any change in the aggregate demand shifts the short-run Phillips curve (SRPC) from
A) SRPC1 to SRPC2.
B) SRPC1 to SRPC3.
C) SRPC2 to SRPC1.
D) SRPC3 to SRPC1.
23) Refer to Figure 14.7. If the economy is at Point A, the cost of raw material increased dramatically, and the aggregate demand did not change, the economy could move to Point
A) A.
B) B.
C) E.
D) D.
24) Refer to Figure 14.7. Suppose the economy is at Point A and the cost of inputs is fixed. A decrease in government spending could move the economy to Point
A) E.
B) B.
C) C.
D) D.
