Comparing the AS-AD model and the Phillips curve, we see that
A) the Phillips curve is graphed as a relationship between the price level and the unemployment rate.
B) the AS-AD model uses the price level and the Phillips curve uses the rate of inflation.
C) the AS-AD model is graphed as a relationship between the inflation rate and the rate of real GDP.
D) the AS-AD model uses the price level and the Phillips curve uses real GDP.
E) they both are graphed as a relationship between the rate of inflation and the unemployment rate.
Correct Answer:
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Q21: An increase in the expected inflation rate
A)shifts
Q22: If the price level is 100 in
Q23: If the expected inflation rate rises, then
Q24: The natural rate hypothesis concludes that the
Q25: Along the long-run Phillips curve the unemployment
Q27: Moving along the short-run Phillips curve, if--------------------increases
Q28: Okun's Law says that the difference between
Q29: If real GDP exceeds potential GDP, then
Q30: The natural rate hypothesis concludes that when
Q31: The short-run Phillips curve is --------------------curve along
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