Question : 61) The shifts of the short-run and long-run Phillips curves : 1238190

61) The shifts of the short-run and long-run Phillips curves in the figure above are 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) an increase in the actual inflation rate.

62) When inflation expectations changed during the 1967-1971 period, this change led to

A) the long-run Phillips curve shifting rightward.

B) the short-run Phillips curve shifting upward.

C) an increase in the natural unemployment rate.

D) the short-run and the long-run Phillips curve both shifting upward.

E) the long-run Phillips curve shifting leftward.

63) The short-run Phillips curve tradeoff becomes less favorable if either

A) the expected inflation rate increases or the natural unemployment rate decreases.

B) the expected inflation rate or the natural unemployment rate increases.

C) potential GDP or the natural unemployment rate increases.

D) the level of real GDP decreases or the natural unemployment rate decreases.

E) potential GDP or the natural unemployment rate decreases.

64) The long-run Phillips curve is the relationship between

A) unemployment and the price level at full employment.

B) unemployment and the inflation rate at the expected price level.

C) inflation and real GDP at full employment.

D) inflation and unemployment when the economy is at full employment.

E) inflation and the expected inflation rate.

65) The long-run Phillips curve is

A) upward sloping.

B) downward sloping.

C) horizontal.

D) vertical.

E) upside-down U-shaped

66) The inflation rate that is used to set the money wage rate and other money prices is the

A) natural inflation rate.

B) actual inflation rate.

C) expected inflation rate.

D) cost of living inflation rate.

E) wage inflation rate.

67) When the expected inflation rate ________, the short-run Phillips curve ________.

A) falls; shifts upward

B) rises; shifts upward

C) rises; shifts downward

D) falls; does not shift

E) rises; might shift upward or downward depending on how the long-run Phillips curve shifts

68) The natural rate hypothesis states that

A) only natural economic policies can bring a permanent reduction in the unemployment rate.

B) changes in the inflation rate temporarily change the unemployment rate.

C) it is natural for the unemployment rate to exceed the inflation rate.

D) it is natural for the unemployment rate to be less than the natural unemployment rate.

E) changes in the inflation rate temporarily change the natural unemployment rate.

69) If the natural unemployment rate decreases, then the short-run Phillips curve ________ and the long-run Phillips curve ________.

A) does not shift; shifts leftward

B) shifts leftward; shifts leftward

C) shifts rightward; shifts leftward

D) shifts rightward; shifts rightward

E) shifts leftward; does not shift

70) The natural unemployment rate

A) increases when job search increases.

B) never changes.

C) always increases.

D) decreases when the inflation rate rises.

E) increases when the expected inflation rate rises.