AP Macro Phillips Curve 5.2

The Phillips curve shows what type of relationship between inflation and unemployment?

• negative

• positive

• parabolic

• symmetric

Which of the following causes movement along the short run Phillips curve?

• Any changes to aggregate supply.

• Any changes to aggregate demand.

• Any changes in frictional or structural unemployment

• All of the above

Which of the following causes a shift in the short run Phillips curve?

• Any changes to aggregate supply.

• Any changes to aggregate demand.

• Any changes in frictional or structural unemployment

• All of the above

Which of the following causes a shift in the long run Philips curve?

• Any changes to aggregate supply.

• Any changes to aggregate demand.

• Any changes in frictional or structural unemployment

• All of the above

According to the the Philips curve, if the inflation rate increases from 4% to 6%, and if the unemployment rate is 5% when the inflation rate was 4%, we can expect the unemployment rate in the short run to...

• stay the same

• increase to 8%

• decrease to 3%

When drawing the long run Philips Curve, you would show it by

• a horizontal line along the y axis.

• a vertical line along the x axis

• a downwards sloping line

• an upwards sloping line

The y axis when drawing a Philips Curve graph is labeled as the

• unemployment rate

• price level

• real output

• inflation rate

The long run Philips curve is also known as the

• real output rate

• natural rate of inflation

• natural unemployment rate

• real interest rate

What combinations of variables shift the short run aggregate supply curve?

• changes in fiscal policy and changes in output technology

• changes in monetary policy and changes inflationary expectations

• changes in monetary policy and changes in fiscal policy

• Changes in output technology and changes in inflationary expectations

According to the Phillips curve, there is

• a trade-off in inflation and unemployment in the short run, but not the long run.

• a trade-off in inflation and unemployment in both short and long run.

• no trade-off in inflation and unemployment in both short and long run.

• a trade-off in inflation and unemployment in the long run, but not the short run.