1. (8) If policymakers accommodate an adverse supply shock, then in the short run the unemployment rate A B C D and the

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1 8 If Policymakers Accommodate An Adverse Supply Shock Then In The Short Run The Unemployment Rate A B C D And The 1 (13.86 KiB) Viewed 12 times

1 8 If Policymakers Accommodate An Adverse Supply Shock Then In The Short Run The Unemployment Rate A B C D And The 2 (14.01 KiB) Viewed 12 times

1 8 If Policymakers Accommodate An Adverse Supply Shock Then In The Short Run The Unemployment Rate A B C D And The 3 (18.05 KiB) Viewed 12 times

1 8 If Policymakers Accommodate An Adverse Supply Shock Then In The Short Run The Unemployment Rate A B C D And The 4 (12.09 KiB) Viewed 12 times

1 8 If Policymakers Accommodate An Adverse Supply Shock Then In The Short Run The Unemployment Rate A B C D And The 5 (15.18 KiB) Viewed 12 times

1. (8) If policymakers accommodate an adverse supply shock, then in the short run the unemployment rate A B C D and the inflation rate rise. and the inflation rate fall. rises and the inflation rate falls. falls and the inflation rate rises.

7. () Suppose policymakers take actions that cause a contraction of aggregate demand. Which of the following is a short-run consequence of this contraction? A B C D The inflation rate decreases. The level of output decreases. The unemployment rate increases All of the above are correct.

17. (48) Suppose expected inflation and actual inflation are both relatively high, and unemployment is at its natural rate. If the Fed then pursues a contractionary monetary policy, which of the following results would be expected in the short run? A B C D Expected inflation would exceed actual inflation, and unemployment would exceed its natural rate. Expected inflation would exceed actual inflation, and unemployment would be below its natural rate. Actual inflation would exceed expected inflation, and unemployment would exceed its natural rate. Actual inflation would exceed expected inflation, and unemployment would be below its natural rate.

19. (If consumption expenditures fall, then in the short run A inflation and unemployment rise. B C D inflation rises and unemployment falls. inflation falls and unemployment rises. inflation and unemployment fall.

Suppose a central bank takes actions that will lead to a higher inflation rate. The public, however, is slow to adjust its expectation of inflation. Then, in the short run, unemployment a. rises. As inflation expectations adjust, the short-run Phillips curve shifts right. b. rises. As inflation expectations adjust, the short-run Phillips curve shifts left. c. falls. As inflation expectations adjust, the short-run Phillips curve shifts right. d. falls. As inflation expectations adjust, the short-run Phillips curve shifts left.