Consider the following Canadian data. Year Inflation rate Unemployment rate
1991 5.60% 10.4%
1992 1.50% 11.3%
1993 1.80% 11.2%
1994 0.20% 10.4%
1995 2.15% 9.5%
1996 1.58% 9.7%
The data suggest
A) no inflation-unemployment relationship
B) an inward shift of the Phillips Curve beginning in 1994
C) an outward shift of the Phillips Curve beginning in 1995
D) a vertical long run Phillips Curve
E) an upward-sloping Phillips Curve
Correct Answer:
Verified
Q27: The next questions refer to the following.
Suppose
Q28: A tax cut
A) pushes the inflation-unemployment coordinates
Q29: The next questions refer to the following.
Suppose
Q30: In the long run,the Phillips Curve
A) slopes
Q31: Central bank independence
A) allows the central bank
Q32: The next questions refer to the following.
Suppose
Q33: Which of the following would most likely
Q34: The sacrifice ratio is likely to be
Q35: Time-inconsistency in monetary policy is most likely
Q37: Empirically,those nations with the strongest,most independent central
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