1) According to the Phillips Curve, as unemployment falls what happens to inflation? Why?
2) According to the Phillips Curve, as unemployment rises what happents to inflaiton? Why?
3) According to the Aggregate Supply/ Aggrgeate Demand model, if AD increases what happebs to Price Level GDP and Unemployment
4) Accroding to the AS/AD model, if AD decreases what happens to PL, GDP and unemployment?
5) According to the AS/AD model if AS decreases what happens to PL GDP and unemployment?
6) Based on your answer to #5 how would you show the decrease in AS on the Philips Curve?
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