Ec2050 Chapter 15 Quiz Solutions

Your quiz has been submitted successfully.Question 14 / 4 pointsIf the economy is at full employment, then the unemployment rateA) is greater than the natural unemployment rate.B) is equal to the natural unemployment rate.C) can be anywhere on a short-run Phillips curve.D) is below the natural unemployment rate.E) is equal to zero.Question 24 / 4 pointsThe short-run Phillips curve showsA) the expected inflation rate.B) potential GDP.C) a tradeoff between the unemployment rate and the inflation rate.D) the natural unemployment rate.E) a tradeoff between real GDP and unemployment.Question 34 / 4 pointsMoving upward along the aggregate supply curve is equivalent toA) shifting the short-run Phillips curve rightward.B) shifting the short-run Phillips curve leftward.C) moving downward along the short-run Phillips curve.D) moving upward along the short-run Phillips curve.E) shifting the short-run Phillips curve upward.Question 44 / 4 pointsOkun's Law states thatA) there is a relationship between the unemployment rate, real GDP, and potential GDP.B) as the real wage rate falls, the quantity of labor demanded increases.C) a higher inflation rate leads to a higher nominal interest rate.D) supply creates its own demand.E) as the unemployment rate