The graph of the short-run relationship between the unemployment rate and inflation is called a(n)
A) MP curve.
B) LM curve.
C) IS curve.
D) Phillips curve.
When the Fed reduces the real interest rate,which of the following does NOT increase?
C) government purchases
D) net exports
Economists who have studied the Phillips curve have concluded that it can shift due to all of the following EXCEPT
A) demand shocks.
B) supply shocks.
C) changes in household expectations of inflation.
D) changes in firms' expectations of inflation.
Most economists think changes in which type of unemployment affects inflation?
A) frictional unemployment
B) cyclical unemployment
C) structural unemployment
D) natural rate of unemployment