The short-run relationship between inflation and unemployment is often called单项选择题

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类似问题

You are a staff economist with the Federal Reserve. The chairman says to you, “We are seeing signs of inflation above our target rate, and I don’t think the Phillips curve is very steep. What should we do to bring the rate back to our target rate?” How do you respond? Answer:  “Because the Phillips curve is relatively flat, we need to [ Select ] decrease increase interest rates [ Select ] by just a little very aggressively in order to [ Select ] raise lower the investment-to-potential output ratio and hence short-run output. A flat Phillips curve requires a [ Select ] big change small change in short-run output in order to lower the inflation rate.”

An adverse supply shock shifts the short-run Phillips curve right and the short-run aggregate-supply curve left.

The long-run Phillips curve is consistent with monetary neutrality implied by the classical dichotomy.

Other things constant, which of the following would reduce unemployment and raise inflation?

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