Macroeconomic theory that emphasized the theories of Keynes and de-emphasized the classical theory developed as the result of the failure of ?

A. Economic theory to explain the simultaneous increases in inflation and unemployment during the 1970s
B. The classical model to explain the prolonged existence of high unemployment during the great depression
C. Fine tuning during the 1960s
D. The economy to grow at a rapid rate during the 1950s

An index of prices of all domestically produced goods in the economy is the ?

A. Wholesale price index (wpi)
B. Consumer price index (cpi)
C. Gdp deflator
D. Producer price index (ppi)

The length of a business cycle would be measured from ?

A. The slump to the expansion
B. Peak to peak
C. Peak to trough
D. Trough to peak

Refer to Exhibit 6.If People in the economy expect inflation to be 3 percent and inflation is 3 percent the economy is operating at point ?

A. B
B. I
C. A
D. H

Refer to Exhibit 6.Suppose the economy is in long-run equilibrium at point E. A sudden increase in government spending should move the economy in the direction of point ?

A. D
B. G
C. E
D. B

Refer to Exhibit 6. Suppose the economy is Operating in long-run equilibrium at point E. An unexpected monetary contraction will move the economy in the direction of point ?

A. H
B. F
C. E
D. C

Which of the following would shift the long-run Phillips curve to the right ?

A. An increase in the minimum wage
B. An increase in the expected inflation
C. An increase in the price of foreign oil
D. An increase in the aggregate demand

A decrease the Price of foreign oil ?

A. Shifts the short-run phillips curve downward and make the unemployment inflation trade-off less favorable
B. Shifts the short run phillips curve upward and makes the unemployment inflation trade-off more favorable
C. Shifts the short run phillips curve upward and makes the unemployment inflation trade off more favorable
D. Shifts the short run phillips curve downward and makes the unemployment inflation trade off more favorable

The original Phillips curve illustrates ?

A. The trade-off between inflation and unemployment
B. The trade-off between output and unemployment
C. The positive relationship between output and unemployment
D. The positive relationship between inflation and unemployment

Along a short-run Phillips curve, ?

A. A higher rate of inflation is associated with a lower unemployment rate
B. A higher rate of growth in output is associated with a lower unemployment rate
C. A higher rate of inflation is associated with a higher unemployment rate
D. A higher rate of growth in output is associated with a higher unemployment rate.