SOLVED

 1) The idea behind the Phillips curve is that ________. A) tight labor markets lead to inflationary pressures B) when the unemployment rate is low, wages will increase C) when firms raise wages to attract new workers, prices will also increase D) all of the above E) none of the above 2) The idea behind the Phillips curve is that ________. A) tightness in the labor market raises wages but has little impact on prices B) when the unemployment rate is low, wages will decrease C) when firms raise wages to attract new workers, prices will also increase D) all of the above E) none of the above 3) The idea behind the Phillips curve is that ________. A) when the unemployment rate is low wages will decrease B) tightness in the labor market puts upward pressures on wages and prices C) when firms raise wages to attract new workers, prices decrease D) all of the above E) none of the above 4) The idea behind the Phillips curve is that ________. A) tightness in the labor market puts downward pressures on wages and prices B) when the unemployment rate is low wages will increase C) when firms raise wages to attract new workers, prices decrease D) all of the above E) none of the above 5) ________ is (are) the endogenous variable(s) in the Phillips curve. A) Expected inflation B) Inflation C) The natural rate of unemployment D) all of the above E) none of the above 6) In the 1960s, the Phillips curve was ________. A) a very popular explanation for inflation fluctuations B) consistent with a clear negative relationship between inflation and unemployment C) suggestive of a permanent trade off between inflation and unemployment D) all of the above E) none of the above 7) In the 1960s, the Phillips curve was ________. A) consistent with a positive relationship between inflation and unemployment B) suggestive of a temporary trade off between inflation and unemployment C) a very popular explanation for inflation fluctuations D) all of the above E) none of the above 8) In the 1960s, advocates of the Phillips curve suggested ________ . A) an “optimal” goal of 1% unemployment and 1% to 2% inflation rates could be achieved B) a “realistic” goal of 7% unemployment and 6% to 7% inflation rates could be achieved C) a “nonperfectionist” goal of 3% unemployment and 4% to 5% inflation rates could be achieved D) all of the above E) none of the above 9) The Phillips curve was ________. A) never very popular in policy circles B) influential in efforts to bring the unemployment rate down to low levels C) generally confirmed in the 1970s, when low unemployment persisted despite rising inflation D) all of the above E) none of the above 10) The Phillips curve was ________. A) adopted by economic policy teams in the Kennedy and Johnson administrations B) influential in efforts to bring the unemployment rate down to low levels C) discredited in the 1970s, when both inflation and unemployment were relatively high D) all of the above E) none of the above 1