The Phillips curve is given by ¹₁+(+2) - U₂ Rewrite this relation as a relation between the deviation of the unemployment rate from the natural rate, inflation, and expected inflation. OA (4:4₂) = -a OB. (U-Un) OC. (4-4) OD. (4₂-4n) In the previous chapter, we derived the natural rate of unemployment. What condition on the price level and the expected price level was imposed in that derivation? A. The natural rate is the unemployment rate at which the actual price level is unrelated to the expected price level. B. The natural rate is the unemployment rate at which the actual price level is equal to the expected price level. OC. The natural rate is the unemployment rate at which the actual price level is less than the expected price level. OD. The natural rate is the unemployment rate at which the actual price level is greater than the expected price level. Given what we know about the actual price level and the expected price level at the natural rate of unemployment, the equation = + (m + 2)- a U₂ can be transformed to show the natural rate of unemployment as OA. Una (m + 2) OB. U = a OC. Un= a + Z OD. 4₂ = m How does the natural rate of unemployment vary with the markup? OA. When the markup increases, the natural rate of unemployment will increase. B. Any change in the markup-either up or down-will cause the natural rate of unemployment to decrease. OC. When the markup increases, the natural rate of unemployment will decrease. OD. The markup and the natural rate of unemployment are unrelated. How does the natural rate of unemployment vary with the catchall term Z? As the catchall term z increases, the natural rate of unemployment Identify how m and 2 may explain variations in the natural rate of unemployment across countries and across time. OA. Only differences in m can explain variation across countries and only differences in 2 can explain variation across time. OB. Differences in both m and 2 can explain variation across countries and across time. OC. Differences in both m and 2 can explain variation across countries but only differences in Z can explain variation across time. OD. Only differences in Z can explain variation across countries and only differences in m can explain variation across time.

The Phillips curve is given by ¹₁+(+2) - U₂ Rewrite this relation as a relation between the deviation of the unemployment rate from the natural rate, inflation, and expected inflation. OA (4:4₂) = -a OB. (U-Un) OC. (4-4) OD. (4₂-4n) In the previous chapter, we derived the natural rate of unemployment. What condition on the price level and the expected price level was imposed in that derivation? A. The natural rate is the unemployment rate at which the actual price level is unrelated to the expected price level. B. The natural rate is the unemployment rate at which the actual price level is equal to the expected price level. OC. The natural rate is the unemployment rate at which the actual price level is less than the expected price level. OD. The natural rate is the unemployment rate at which the actual price level is greater than the expected price level. Given what we know about the actual price level and the expected price level at the natural rate of unemployment, the equation = + (m + 2)- a U₂ can be transformed to show the natural rate of unemployment as OA. Una (m + 2) OB. U = a OC. Un= a + Z OD. 4₂ = m How does the natural rate of unemployment vary with the markup? OA. When the markup increases, the natural rate of unemployment will increase. B. Any change in the markup-either up or down-will cause the natural rate of unemployment to decrease. OC. When the markup increases, the natural rate of unemployment will decrease. OD. The markup and the natural rate of unemployment are unrelated. How does the natural rate of unemployment vary with the catchall term Z? As the catchall term z increases, the natural rate of unemployment Identify how m and 2 may explain variations in the natural rate of unemployment across countries and across time. OA. Only differences in m can explain variation across countries and only differences in 2 can explain variation across time. OB. Differences in both m and 2 can explain variation across countries and across time. OC. Differences in both m and 2 can explain variation across countries but only differences in Z can explain variation across time. OD. Only differences in Z can explain variation across countries and only differences in m can explain variation across time.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter21: Unemployment

Section: Chapter Questions

Problem 41CTQ: Unemployment rates have been higher in many European countries in recent decades than in the United...

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