Macroeconomics Chapter 22 Test 3

Closely watched indicators such as the inflation rate and unemployment are released each month by the Bureau of the Budget. Bureau of Labor Statistics. Department of the Treasury. President's Council of Economic Advisors.

The misery index is calculated as the inflation rate plus the unemployment rate. unemployment rate minus the inflation rate. actual inflation rate minus the expected inflation rate. natural unemployment rate times the inflation rate

In the long run, the natural rate of unemployment depends primarily on the level of aggregate demand. inflation depends primarily upon the money supply growth rate. there is a tradeoff between the inflation rate and the natural rate of unemployment. All of the above are correct.

In the long run, the natural rate of unemployment depends primarily on the level of aggregate demand. inflation depends primarily upon the money supply growth rate. there is a tradeoff between the inflation rate and the natural rate of unemployment. All of the above are correct.

The short-run relationship between inflation and unemployment is often called the Classical Dichotomy. Money Neutrality. the Phillips curve. None of the above is correct.

Phillips found a positive relation between unemployment and inflation in the United Kingdom. positive relation between unemployment and inflation in the United States. negative relation between unemployment and inflation in the United States. negative relation between unemployment and inflation in the United Kingdom

In the late 1960s, Milton Friedman and Edmund Phelps argued that the trade-off between inflation and unemployment did not apply in the long run This claim is consistent with monetary neutrality in the long run. the trade-off between inflation and unemployment did not apply in the long run. This claim is inconsistent with monetary neutrality in the long run. the trade-off between inflation and unemployment applied in both the short run and the long run. This claim is consistent with monetary neutrality in the long run. the trade-off between inflation and unemployment applied in both the short run and the long run. This claim is inconsistent with monetary neutrality in the long run.

In the short run unemployment and inflation are positively related. In the long run they are largely unrelated problems. and in the long run inflation and unemployment are positively related. unemployment and inflation are negatively related. In the long run they are largely unrelated problems. and in the long run inflation and unemployment are negatively related.