3 6 12 UNEMPLOYMENT RATE (Percent) 9 15 18 ollowing statements are true based on these graphs? Check all that apply. natural level of output is $3 trillion. unemployment rate is currently 9% higher than the natural rate of unemployment. current quantity of output is greater than potential output. central bank of the economy decreases the money supply.
3 6 12 UNEMPLOYMENT RATE (Percent) 9 15 18 ollowing statements are true based on these graphs? Check all that apply. natural level of output is $3 trillion. unemployment rate is currently 9% higher than the natural rate of unemployment. current quantity of output is greater than potential output. central bank of the economy decreases the money supply.
Chapter17: The Philips Curve And Expetactions Theory
Section: Chapter Questions
Problem 1SQP
Related questions
Question
![INFLATION F
0
3 6
12
UNEMPLOYMENT RATE (Percent)
9
15
SRPC
18
Which of the following statements are true based on these graphs? Check all that apply.
The natural level of output is $3 trillion.
The unemployment rate is currently 9% higher than the natural rate of unemployment.
The current quantity of output is greater than potential output.
The long-run effect of the central bank's policy is
in real GDP.
Suppose the central bank of the economy decreases the money supply.
Show the long-run effects of this policy on both of the graphs by shifting the appropriate curves.
in the inflation rate,
in the unemployment rate, and](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F353d9390-9d86-4b30-b14b-c5063d2ffce9%2Fbb86ce64-e66e-4d5d-80fa-f6ddfebceef8%2Fko6af9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:INFLATION F
0
3 6
12
UNEMPLOYMENT RATE (Percent)
9
15
SRPC
18
Which of the following statements are true based on these graphs? Check all that apply.
The natural level of output is $3 trillion.
The unemployment rate is currently 9% higher than the natural rate of unemployment.
The current quantity of output is greater than potential output.
The long-run effect of the central bank's policy is
in real GDP.
Suppose the central bank of the economy decreases the money supply.
Show the long-run effects of this policy on both of the graphs by shifting the appropriate curves.
in the inflation rate,
in the unemployment rate, and
![The following graphs show the state of an economy that is currently in long-run equilibrium. The first graph shows the aggregate demand (AD) and
long-run aggregate supply (LRAS) curves. The second shows the long-run and short-run Phillips curves (LRPC and SRPC).
PRICE LEVEL
INFLATION RATE
0
3
LRAS
4
5
LRPC
9
AD
O
AD
LRAS
6
12
UNEMPLOYMENT RATE (Percent)
15
SRPC
18
Ⓒ
SRPC
-
LRPC](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F353d9390-9d86-4b30-b14b-c5063d2ffce9%2Fbb86ce64-e66e-4d5d-80fa-f6ddfebceef8%2Fl05afoh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following graphs show the state of an economy that is currently in long-run equilibrium. The first graph shows the aggregate demand (AD) and
long-run aggregate supply (LRAS) curves. The second shows the long-run and short-run Phillips curves (LRPC and SRPC).
PRICE LEVEL
INFLATION RATE
0
3
LRAS
4
5
LRPC
9
AD
O
AD
LRAS
6
12
UNEMPLOYMENT RATE (Percent)
15
SRPC
18
Ⓒ
SRPC
-
LRPC
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