[Solved] What Impact Does Monetary Policy Have on the Long-Run Phillips

What can the Bank of Canada do to reduce the natural rate of unemployment? A)nothing B)enter into purchase and resale agreements C)enter into sale and repurchase agreements D)reduce the policy rate target E)raise the required reserve ratio

What is the NAIRU? A)the natural accelerating inflation rate of unemployment B)the nonaccelerating inflation rate of unemployment C)the nongovernmental agency of inflationary rate unions D)the new accrual index of real unemployment E)the normal aggregate investment rate of unilateral investment

The long-run aggregate supply curve is ________, while the long-run Phillips curve is ________. A)positively sloped; negatively sloped B)vertical; negatively sloped C)vertical; also vertical D)positively sloped; also positively sloped E)vertical; horizontal

If the economy is producing at potential GDP, A)unemployment is at its natural rate. B)the Phillips curve must be positively sloped. C)the short-run aggregate supply curve must be vertical. D)inflation in the economy is at its natural rate. E)expectations of inflation must be accurate.

The long-run Phillips curve is ________ than the short-run Phillips curve. A)flatter B)steeper C)less stable D)more volatile E)more curved

When unemployment is below its natural rate, the inflation rate will eventually A)increase. B)decrease. C)move to its natural rate. D)become equal to the natural rate of unemployment. E)fall to meet expected inflation.

If the Bank of Canada attempts to continue reducing unemployment by manipulating monetary policy, which of the following would you expect to see? A)The Bank of Canada will follow deflationary monetary policies. B)The Bank of Canada will follow inflationary monetary policies. C)The rate of inflation will fall as the Bank of Canada tries to reduce the unemployment rate. D)The Bank of Canada will reduce the natural rate of unemployment. E)The Bank of Canada will have to target inflation rates.

Growth in aggregate demand will A)cause deflation. B)increase unemployment. C)move the economy to a higher point on the short-run Phillips curve. D)cause the short-run Phillips curve to shift to the left. E)cause the short-run Phillips curve to become flatter.

If weak aggregate demand is pushing the economy into recession, which of the following must be true? A)The economy is at an equilibrium that is on the long-run aggregate supply curve. B)The economy is at an equilibrium that is on the long-run Phillips curve. C)The economy is at an equilibrium that is not on the long-run Phillips curve. D)Contractionary monetary policies will push the economy back to the long-run Phillips curve. E)Expansionary fiscal policy will be required to restore equilibrium.

In the long run, the Bank of Canada can control which of the following? A)the inflation rate B)the unemployment rate C)the growth rate of real GDP in the economy D)the natural rate of unemployment E)the federal budget deficit