Biology Forums - Study Force

The long-run Phillips curve:
 a. is downward sloping.
  b. is upward sloping.
  c. shows there is no tradeoff between unemployment and inflation.
  d. is horizontal at the natural rate of inflation.

QUESTION 2

If the consumer price index (CPI) in Year X was 300 and the CPI in Year Y was 325, the rate of inflation for Year Y was:
 a. 325 percent.
  b. 25 percent.
  c. 5 percent.
  d. 8 percent.

QUESTION 3

Supply-side economics calls for:
 a. lower taxes on businesses and individuals.
  b. regulatory reforms to increase productivity.
  c. government subsidies to promote technological advance.
  d. All of these.

QUESTION 4

Since the 1970s, the Phillips curve has:
 a. remained stable.
  b. moved in a clockwise direction.
  c. been unstable.
  d. been used as a reliable model to guide public policy.

QUESTION 5

Which of the following is true about inflation?
 a. Inflation promotes social harmony by uniting people against the government.
  b. Inflation is more damaging if it is anticipated.
  c. Accurate anticipation of inflation is possible for everyone who is well informed about economic events.
  d. Those who lend money at a rate below the rate of inflation suffer economic losses.
  e. If people accurately anticipate inflation, their actions will prevent it.

QUESTION 6

Which of the following policies is a supply-side policy?
 a. Reduction in taxes.
  b. Reduction in regulation.
  c. Reduction in resource prices.
  d. Subsidies to produce technological advances.
  e. All of these.

QUESTION 7

On a Phillips curve diagram, a decrease in the rate of inflation, other things being equal, is represented by a(n):
 a. upward shift of the Phillips curve.
  b. downward movement along Phillips curve.
  c. upward movement along the Phillips curve.
  d. downward shift of the Phillips curve.

QUESTION 8

In periods of high inflation,
 a. people want to hold on to as much money as possible.
  b. the purchasing power of money is decreasing.
  c. nobody wants to work and earn income.
  d. low nominal interest rates are likely to result.
  e. nobody wants to buy goods and services.

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