Click Clickon onthe thebutton buttontotogo gototothe theQuestion problem © 2013 Pearson The Short-Run Policy Tradeoff 31 CLICKER QUESTIONS © 2013 Pearson Click Clickon onthe thebutton buttontotogo gototothe theQuestion problem Checkpoint 31.1 Checkpoint 31.2 Checkpoint 31.3 Question Question 11 Question Question 55 Question Question 88 Question Question 22 Question Question 66 Question Question 99 Question Question 33 Question Question 77 Question Question 10 10 Question Question 44 © 2013 Pearson CHECKPOINT 31.1 Question As the economy moves along the short-run Phillips curve and the unemployment rate increases, the inflation rate A B C D E decreases increases does not change initially decreases and then increases initially increases and then decreases © 2013 Pearson CHECKPOINT 31.1 Question If real GDP exceeds potential GDP, then employment is full employment, and the unemployment rate the natural unemployment rate A below; exceeds B equal to; is less than C above; is less than D above; exceeds E equal to; equal to © 2013 Pearson CHECKPOINT 31.1 Question According to Okun’s Law, if the natural unemployment rate is percent, the actual unemployment rate is percent, and potential GDP is $10 trillion, then actual real GDP is _ A B C D E $12 trillion $11 trillion $9.6 trillion $10.4 trillion $10.2 trillion © 2013 Pearson CHECKPOINT 31.1 Question When a movement up along the aggregate supply curve occurs, there is also _ A a movement down along the short-run Phillips curve B a movement up along the short-run Phillips curve C a rightward shift of the short-run Phillips curve D a leftward shift of the short-run Phillips curve E neither a movement along nor a shift in the short-run Phillips curve © 2013 Pearson CHECKPOINT 31.2 Question When the expected inflation rate , the short-run Phillips curve A falls; shifts upward B rises; shifts upward C rises; shifts downward D falls; does not shift E rises; might shift upward or downward depending on how the long-run Phillips curve shifts © 2013 Pearson CHECKPOINT 31.2 Question The natural rate hypothesis states that changes in the A natural unemployment rate bring a temporary change in the inflation rate B inflation rate temporarily change the unemployment rate C unemployment rate exceed changes in the inflation rate D the unemployment rate are less than changes in the natural unemployment rate E the inflation rate temporarily change the natural unemployment rate © 2013 Pearson CHECKPOINT 31.2 Question If the natural unemployment rate decreases, then the shortrun Phillips curve and the long-run Phillips curve A does not shift; shifts leftward B shifts leftward; shifts rightward C shifts rightward; shifts leftward D shifts leftward; shifts leftward E shifts leftward; does not shift © 2013 Pearson CHECKPOINT 31.3 Question A surprise reduction of inflation will A raise the expected inflation rate B increase real GDP C create a recession D decrease the natural unemployment rate E eventually shift in the short-run Phillips curve downward © 2013 Pearson CHECKPOINT 31.3 Question A credible announced inflation reduction results in natural unemployment rate and shift in the short-run Phillips curve A a higher; an upward B a lower; an upward C no change in the; an upward D no change in the; a downward E no change in the; no © 2013 Pearson CHECKPOINT 31.3 Question 10 In 1981, the Fed _ A created a surprise inflation reduction policy and created an expansion B created a surprise inflation reduction policy and created a recession C credibly announced an inflation reduction policy and created a recession D credibly announced an inflation reduction policy and created an expansion E took no action so that the inflation rate skyrocketed © 2013 Pearson ...The Short-Run Policy Tradeoff 31 CLICKER QUESTIONS © 2013 Pearson Click Clickon onthe thebutton buttontotogo gototothe theQuestion... B a movement up along the short-run Phillips curve C a rightward shift of the short-run Phillips curve D a leftward shift of the short-run Phillips curve E neither a movement along nor a shift... E shifts leftward; does not shift © 2013 Pearson CHECKPOINT 31.3 Question A surprise reduction of inflation will A raise the expected inflation rate B increase real GDP C create a recession