[Solved] Figure 1310 Alt Text for Figure 13

According to the "rational expectations" school of thought in macroeconomics, the short-run Phillips curve is ________ in face of anticipated changes in monetary policy. A)negatively sloped B)positively sloped C)vertical D)horizontal

According to the "rational expectations" school of thought in macroeconomics, the short-run Phillips curve is ________ in face of unanticipated changes in monetary policy. A)negatively sloped B)positively sloped C)vertical D)horizontal

Figure 13.7 Alt text for Figure 13.7: In figure 13.7, a graph shows the short-run and long-run Phillips curves. Long description for Figure 13.7: The x-axis is labelled, unemployment rate percent.The y-axis is labelled, inflation rate percent per year.A line labelled, short-run Philips Curve, begins at the top left corner and slopes down to the end of the x-axis.A line labelled, long-run Philips Curve, is perpendicular to the x-axis, and begins at the x-axis value 5.5%.Long-run Philips curve intersects short-run Philips Curve, at point (5.5%, 10%)just past the midpoint of both lines.Point (7.5, 5)is plotted close to the right end of the short-run Philips Curve.The points are connected to their respective coordinates on the x and y-axes with dotted lines. -Refer to Figure 13.7.Consider the Phillips curves depicted in the graph above.The Bank of Canada announces its intention to decrease inflation from 10 percent to 5 percent per year, and it succeeds. If expectations of inflation are not altered by the Bank of Canada's announcement, the rate of unemployment will be ________ in the short run. A)less than 5.5 percent B)5.5 percent C)between 5.5 and 7.5 percent D)7.5 percent

Figure 13.8 Alt text for Figure 13.8: In figure 13.8, a graph shows the short-run and long-run Phillips curves. Long description for Figure 13.8: The x-axis is labelled, unemployment rate percent.The y-axis is labelled, inflation rate percent per year.A line labelled, short-run Philips Curve, begins at the top left corner and slopes down to the end of the x-axis.A line labelled, long-run Philips Curve, is perpendicular to the x-axis, and begins fro the x-axis value 5.5%.Lon-run Philips Curve intersects short-run Philips Curve, at point (5.5%, 10%)just past the midpoints of both lines.Point (7.5, 5)is plotted close to the right end of the short-run Philips Curve.The points are connected to their respective coordinates on the x and y-axes with dotted lines. -Refer to Figure 13.8.Consider the Phillips curves depicted in the graph above.The Bank of Canada announces its intention to decrease inflation from 10 percent to 5 percent per year, and it succeeds. If expectations of inflation are reduced to 8 percent by the Bank of Canada's announcement, the rate of unemployment will be ________ in the short run. A)less than 5.5 percent B)5.5 percent C)between 5.5 and 7.5 percent D)7.5 percent

Figure 13.9 Alt text for Figure 13.9: In figure 13.9, a graph shows the short-run and long-run Phillips curves. Long description for Figure 13.9: The x-axis is labelled, unemployment rate percent.The y-axis is labelled, inflation rate percent per year.A line labelled, short-run Philips Curve, begins at the top left corner and slopes down to the end of the x-axis.A line labelled, long-run Philips Curve, is perpendicular to the x-axis, and begins from x-axis value 5.5%.Long-run Philips Curve intersects the short-run Philips Curve at point (5.5%, 10%)just pas the midpoint of both lines.Point (7.5, 5)is plotted close to the right end of the short-run Philips Curve.The points are connected to their respective coordinates on the x and y-axes with dotted lines. -Refer to Figure 13.9.Consider the Phillips curves depicted in the graph above.The Bank of Canada announces its intention to decrease inflation from 10 percent to 5 percent per year, and it succeeds. If the assumptions of the rational expectations school hold true, and the Bank of Canada's announcement is credible, the rate of unemployment will be ________ in the short run. A)less than 5.5 percent B)5.5 percent C)between 5.5 and 7.5 percent D)7.5 percent

If wages and prices adjust rapidly, we would expect expansionary monetary policy to be A)more likely to reduce the natural rate of unemployment. B)more likely to affect the unemployment rate. C)less likely to affect the unemployment rate. D)less likely to result in a vertical short-run Phillips curve. E)less likely to affect the exchange rate.

When individuals use ________ about an economic variable to make a decision, expectations are rational. A)only historical information B)only information announced by the Bank of Canada C)all available information D)only information garnered in the private sector E)only information from academic research

If people assume that future rates of inflation will ________, they are said to have adaptive expectations. A)be higher than inflation rates of the past B)follow the pattern of inflation rates in the past C)be lower than inflation rates of the past D)not be related to inflation rates of the past E)be exactly as predicted by the Bank of Canada

Models that focus on factors other than changes in the money supply to explain fluctuations in real GDP are called A)nonmonetary business cycle models. B)real business cycle models. C)rational expectations models. D)short-run macroeconomic models. E)new Keynesian models.

________ would be the source of a "real" business cycle. A)Technology shocks B)Anticipated changes in monetary policy C)Unanticipated changes in monetary policy D)Anticipated changes in fiscal policy E)All of the above