SOLVED

21) Which of the following might cause an upward shift of the modern Phillips curve? A) an increase in oil prices B) an increase in the price of imports C) wage agreements that include compensation for inflation D) all of the above E) none of the above 22) ________ will cause a movement along the modern Phillips curve. A) An increase in oil prices B) An increase in the price of imports C) Wage agreements that include compensation for inflation D) all of the above E) none of the above 23) On the modern Phillips curve, the initial impact of an increase in the world price of steel is shown by ________. A) an upward movement along the Phillips curve to a higher inflation rate B) an upward shift of the Phillips curve leading to higher inflation rates for any unemployment rate C) a downward shift of the Phillips curve leading to lower inflation rates for any unemployment rate D) a downward movement along the Phillips curve to higher unemployment rates E) none of the above 24) On the modern Phillips curve, the initial impact of government policies to stimulate the economy is shown by ________. A) an upward movement along the Phillips curve to a higher inflation rate B) an upward shift of the Phillips curve leading to higher inflation rates for any unemployment rate C) a downward shift of the Phillips curve leading to lower inflation rates for any unemployment rate D) a downward movement along the Phillips curve to higher unemployment rates E) none of the above 25) On the modern Phillips curve, the initial impact of productivity improvements that lower the costs of production is shown by ________. A) an upward movement along the Phillips curve to a higher inflation rate B) an upward shift of the Phillips curve leading to higher inflation rates for any unemployment rate C) a downward shift of the Phillips curve leading to lower inflation rates for any unemployment rate D) a downward movement along the Phillips curve to higher unemployment rates E) none of the above 26) On the modern Phillips curve, the beginning of a recession is shown by ________. A) an upward movement along the Phillips curve to a higher inflation rate B) an upward shift of the Phillips curve leading to higher inflation rates for any unemployment rate C) a downward shift of the Phillips curve leading to lower inflation rates for any unemployment rate D) a downward movement along the Phillips curve to higher unemployment rates E) none of the above 27) As wages and prices become more flexible ________. A) wages becomes less responsive to unemployment deviations from the natural rate B) it becomes easier to differentiate the short-run from the long-run Phillips curve C) inflation becomes more responsive to unemployment deviations from the natural rate D) all of the above E) none of the above 28) If wages and prices become extremely flexible ________. A) there is no trade off between inflation and unemployment B) unemployment can hardly deviate from the natural rate C) it becomes very difficult to differentiate the short-run from the long-run Phillips curve D) all of the above E) none of the above 29) As wages and prices become more sticky ________. A) inflation becomes more responsive to unemployment deviations from the natural rate B) wages become less responsive to unemployment deviations from the natural rate C) it becomes more difficult to differentiate the short-run from the long-run Phillips curve D) all of the above E) none of the above 30) As wages and prices become more sticky ________. A) the short-run Phillips curve gets flatter B) wages become less responsive to unemployment deviations from the natural rate C) it becomes easier to differentiate the short-run from the long-run Phillips curve D) all of the above E) none of the above