Consider an economy that has the typical sacrifice ratio we
Consider an economy that has the "typical" sacrifice ratio we discussed in the Power Points. If inflation is currently 6% and the economy would like it to be 2% within the year, that economy must experience a ____________% change in GDP (output).
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szlig beta in the phillips curve equation increases asa expected inflation is further from actual inflationb inflation
which of the following is included in the index of leading economic indicatorsa an index of bond pricesb the monetary
as the price level risesa the quantity supplied of output rises in the long runb the ad curve shifts to the leftc real
cost-push inflation occurs becausea production costs have risenb a demand shock has occurredc the as curve has shifted
consider an economy that has the typical sacrifice ratio we discussed in the power points if inflation is currently 6
inflation may fall without a significant increase in unemployment ifa the natural rate hypothesis holds trueb we base
andrew thinks the government should most of the time butt out he thinks the economy can work things out best on its own
automatic stabilizersa include tax rates and transfer paymentsb require active policy to workc have significant inside
one implication of the lucas critique is thata automatic stabilizers dont work when expectations are rationalb rational
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