Question : 15.1   The Short-Run Phillips Curve 1) If the economy at full : 1240597

15.1   The Short-Run Phillips Curve

1) If the economy is at full employment, then the unemployment rate

A) is greater than the natural unemployment rate.

B) is equal to the natural unemployment rate.

C) is below the natural unemployment rate.

D) can be anywhere on a short-run Phillips curve.

E) is equal to zero.

2) The short-run Phillips curve shows

A) potential GDP.

B) a tradeoff between the unemployment rate and the inflation rate.

C) the natural unemployment rate.

D) the expected inflation rate.

E) a tradeoff between real GDP and unemployment.

3) The short-run Phillips curve shows the relationship between the

A) natural unemployment rate and the expected inflation rate.

B) natural unemployment rate and the real interest rate.

C) inflation rate and the unemployment rate.

D) expected inflation rate and the unemployment rate.

E) inflation rate and the nominal interest rate.

4) The short-run Phillips curve is a curve that shows the relationship, other things being constant, between ________ and ________.

A) the inflation rate; the unemployment rate

B) the unemployment rate; real GDP

C) potential GDP; the natural unemployment rate

D) the inflation rate; the expected inflation rate

E) the inflation rate; the nominal interest rate

5) The short-run Phillips curve shows the relationship between the inflation rate and the unemployment rate when ________ remain(s) constant.

A) monetary policy

B) the natural unemployment rate and the expected inflation rate

C) fiscal policy

D) interest rates

E) aggregate demand

6) The natural unemployment rate and the expected inflation rate are constant when moving along the ________, which shows a tradeoff between ________ and ________.

A) short-run Phillips curve; inflation; unemployment

B) aggregate demand curve; inflation; employment

C) aggregate supply curve; inflation; unemployment

D) long-run Phillips curve; inflation; unemployment

E) short-run Phillips curve; inflation; employment

7) The short-run Phillips curve illustrates ________ relationship between the unemployment rate and the inflation rate.

A) a positive

B) a negative

C) a mixed

D) no

E) an upside-down U-shaped

8) The short-run Phillips curve is

A) downward sloping.

B) upward sloping.

C) vertical at a constant rate of unemployment.

D) horizontal at a constant rate of inflation.

E) U-shaped.

9) The short-run Phillips curve is ________ curve along which an increase in the unemployment rate is associated with ________ in the inflation rate.

A) a vertical; no change

B) a downward sloping; a decrease

C) an upward sloping; an increase

D) a horizontal; no change

E) a downward sloping; no change

10) The tradeoff exhibited by the short-run Phillips curve is

A) higher inflation with higher unemployment.

B) lower inflation with lower unemployment.

C) higher unemployment with lower inflation.

D) changing inflation with constant unemployment.

E) higher price level with lower real GDP.