A person who is made redundant because of the contraction of an industry is a victim of ?

A. Frictional unemployment
B. Demand-deficient unemployment
C. Classical unemployment
D. Structural unemployment

The Phillips curve indicates that there is a ?

A. Negative relationship between the inflation rate and labor demand
B. Positive relationship between labor supply and the inflation rate
C. Positive relationship between the inflation rate and the employment the
D. Negative relationship between the inflation rate and the unemployment rate

If input price prices adjusted very rapidly to output prices as classical economists argue the Philips curve would be ?

A. Vertical or nearly vertical
B. Upward sloping
C. Downward sloping
D. Horizontal or nearly horizontal

Doubts about the natural and the existences of the Phillips curve arose in the 1970s when the economy experienced ?

A. A high rate of inflation: along with a low rate of unemployment
B. Simultaneously low rates of inflation and unemployment
C. Simultaneously high rates of inflation and unemployment
D. A high rate of unemployment along with a low rate of inflation

When economists use the term real business cycle theory they are suggesting that business cycles are caused by ?

A. Shifts in aggregate supply
B. Changes in export demand due to the state of the world economy
C. Business confidence
D. Business expectations

The relative-wage explanation for the existence of downwardly sticky wages emphasizes ?

A. The contention that workers in one industry may be unwilling to accept a wage cut unless they know that workers in other industries are receiving similar cuts
B. Employment contracts that stipulate workers’ wages usually for a period of one to three years
C. Unspoken agreements between workers and firms that firms will not cut wages
D. The incentive that firms may have to hold wages above the market clearing rate

All the following are types of monetary policy expect ?

A. A nominal money stock target
B. A balanced budget
C. An inflation target
D. The pursuit of a target real interest rate

The AD schedule indicates that _______ inflation is associated with ________ output?

A. Higher, lower
B. Higher, higher
C. Lower, lower
D. Zero, zero

In the long run, the Phillips curve will be vertical at the natural rate of unemployment if ?

A. The long-run aggregate demand curve is horizontal at the natural rate of inflation
B. The long run aggregate demand curve is vertical at potential gdp
C. The long run aggregate demand curve is vertical at potential gdp
D. The long run supply curve is horizontal at the natural rate of inflation

Potential GDP is the level of aggregate output ?

A. That can be produced if structural unemployment is zero
B. That can be produced at a zero-unemployment rate
C. That can be sustained in the long run without inflation
D. That can be sustained in the long run, if the inflation rate is zero