Download 10 Questions from Reffonomics: Phililps Curve Interactive

10 Questions from Reffonomics: Phililps Curve Interactive
1. When asked if the Short-Run Phillips Curve ever shifts up or down, President Obama cut right to
the chase and pointed that the SRPC was a mirror image of the __________________________.
So, you see, when the ____________________ shifts right, the SRPC shifts ________________
and vice versa.
2. What country’s economy did Phillips study? _________________________
3. How high did the unemployment rate in the US reach in the 1930’s (approx..)? _________And
how low did deflation dip in 1931-33 (approx.)?____________________
4. If AD increases, GDP rises, price levels ____________ and unemployment
___________________. So an increase in AD equates to sliding up the SRPC and a decrease in
AD equates to sliding __________ the SRPC.
5. What are the two reasons the SRPC shifts? Positive or negative ________________ and
changes in ______________________________.
6. This winter’s unusually cold weather was a mild supply shock, shifting the SRAS curve to the
__________. The caused the SRPC to shift to the ________________, meaning for every level of
unemployment, inflation was ____________________, or conversely, for every level of inflation,
unemployment was _________________.
Yes, sometimes the hopey-changey thing is good, sometimes its not.
7. The Long-Run Phillips Curve (LRPC) is vertical because it is the mirror image of the __________.
It represents the economy at it ____________ Rate of Employment. This is also shown as Yf in
many graphs, meaning Real GDP at ______________________________.
8. In the long run, there is no tradeoff between ________________________ and
__________________. This is because an adjustment back to the LRPC occurs, similar to the
adjustment in the AD/AS model back to _______________. When AD increases, price levels
___________. This leads to an increase in one of the factors which shifts the SRPC curve,
_______________, causing the SRPC curve to shift to the _______________. The result is
unemployment back at the vertical __________ line, despite a rise in price levels.
9.
Since the SRPC curve implies there is a tradeoff between unemployment and inflation, the
President’s goal must be for the _____ Run. This means he is looking for policies that will shift
the ____________ to the __________. An example would be an increase in productivity
through new technology. The leftward shift in the ___________ also means a rightward shift in
its mirror image, the ____________________.
10. The Short-Run Phillips Curve should be considered a cause-and-effect relationship. T F
11. Who is in the below picture?