[Solved] According to the ________ Phillips Curve(s), the Unemployment Rate and the Inflation

If the rate of inflation in the economy is steady at 5 percent per year, how does the short-run Phillips curve predict that the unemployment rate will be changing, if at all? Does your answer change if inflation in the economy is 0 percent? Illustrate your answer with a Phillips curve.

Canadians have loaded up on debt to historic levels; per capita debt is over 165 percent of disposable income, mirroring that of the United States prior to the subprime financial crisis.The primary cause for this is A)the historically low interest rates the Bank of Canada has maintained to speed up recovery following the "Great Recession." B)the reduced regulations around borrowing in Canada. C)all-time high levels of disposable income. D)the availability of government securities, like Canada Savings Bonds. E)falling incomes of the middle class.

Evidence shows that for many people, delaying searching for a job for a year or longer after they are laid off will contribute to a deterioration of their job skills, making it harder for them to find employment.This deterioration in job skills and the subsequent retraining that is necessary to obtain employment relates to which type of unemployment? A)cyclical B)frictional C)seasonal D)structural E)natural

In the ________, A.W.Phillips plotted data for Great Britain that revealed a relationship between rates of change in wages versus unemployment rates.Economists later discovered other "Phillips curve" relationships between rates of inflation versus unemployment rates. A)1880s B)1930s C)1940s D)1950s E)1960s

The curve showing the short-run relationship between ________ and the ________ is called the Phillips curve. A)nominal interest rate; real interest rate B)the unemployment rate; the inflation rate C)price level; real GDP D)exchange rate; real interest rate E)the interest rate; government budget deficits

In a graph of unemployment rates (on the horizontal axis)versus inflation rates (on the vertical axis), the short-run Phillips Curve is A)downward sloping. B)horizontal. C)vertical. D)upward sloping.

Figure 13.1 Alt text for Figure 13.1: In figure 13.1, a short-run Phillips curve. Long description for Figure 13.1: The x-axis is labelled, unemployment rate percent, and the y-axis is labelled, inflation rate percent per year.A straight line labelled, Philips curve, begins at the top left corner and slopes down to the end of the x-axis.Point A is plotted half way along line Philips curve.Point B is plotted to the right of point A and point C is plotted is to the left of point A.Point D is plotted above this line, in the left center of the quadrant.Point E is plotted below this line, directly below point A. -Refer to Figure 13.1.What should the Bank of Canada do if it wants to move from point A to point C in the short-run Phillips curve depicted in the figure above? A)buy government securities B)sell government securities C)raise the discount rate D)decrease the money supply E)raise taxes

Figure 13.1 Alt text for Figure 13.1: In figure 13.1, a short-run Phillips curve. Long description for Figure 13.1: The x-axis is labelled, unemployment rate percent, and the y-axis is labelled, inflation rate percent per year.A straight line labelled, Philips curve, begins at the top left corner and slopes down to the end of the x-axis.Point A is plotted half way along line Philips curve.Point B is plotted to the right of point A and point C is plotted is to the left of point A.Point D is plotted above this line, in the left center of the quadrant.Point E is plotted below this line, directly below point A. -Refer to Figure 13.1. Suppose that the economy is currently at point A.If the Bank of Canada engaged in expansionary monetary policy, where would the economy end up in the short run? A)It would remain at point A. B)point B C)point C D)point D E)point E

Figure 13.1 Alt text for Figure 13.1: In figure 13.1, a short-run Phillips curve. Long description for Figure 13.1: The x-axis is labelled, unemployment rate percent, and the y-axis is labelled, inflation rate percent per year.A straight line labelled, Philips curve, begins at the top left corner and slopes down to the end of the x-axis.Point A is plotted half way along line Philips curve.Point B is plotted to the right of point A and point C is plotted is to the left of point A.Point D is plotted above this line, in the left center of the quadrant.Point E is plotted below this line, directly below point A. -Refer to Figure 13.1.Suppose that the economy is currently at point A, and the unemployment rate at A is the natural rate.What policy would the Bank of Canada pursue if it wanted the economy to move to point C in the long run? A)buy government securities B)sell government securities C)lower the discount rate D)increase the money supply E)No policy will move the economy to point C in the long run.

Figure 13.1 Alt text for Figure 13.1: In figure 13.1, a short-run Phillips curve. Long description for Figure 13.1: The x-axis is labelled, unemployment rate percent, and the y-axis is labelled, inflation rate percent per year.A straight line labelled, Philips curve, begins at the top left corner and slopes down to the end of the x-axis.Point A is plotted half way along line Philips curve.Point B is plotted to the right of point A and point C is plotted is to the left of point A.Point D is plotted above this line, in the left center of the quadrant.Point E is plotted below this line, directly below point A. -Refer to Figure 13.1.Suppose that the economy is currently at point A on the short-run Phillips curve in the figure above, and the unemployment rate at A is the natural rate.If the economy was to move to point B, which of the following must be true? A)The economy is producing a level of GDP equal to potential GDP. B)Aggregate demand must have increased. C)Equilibrium GDP at point B must be below potential GDP. D)The Bank of Canada conducted expansionary policy to cause the move. E)The Bank of Canada purchased government securities to cause the move.