Fill in the blanks to make the following statements correct. a. The term NAIRU stands for the

Question:

Fill in the blanks to make the following statements correct.

a. The term NAIRU stands for the ___________.

b. Unemployment is said to be equal to the NAIRU when GDP is equal to __________.

c. Changes in nominal wages result from two effects: the effect and the ________ effect and the ___________ effect. 

Both of these effects cause the ____________ curve to shift.

d. The \(A S\) curve shifts up when nominal wages _________ and also shifts up with a negative ___________ shock.

e. Actual inflation can come from any of its three component parts. They are ________,__________ and ___________.

f. If the rate of inflation is constant at 6 percent and actual GDP equals potential GDP, then we can say that the central bank is inflation expectations. That is, the central bank is permitting \(\mathrm{a}(\mathrm{n})\) _________ in the money supply such that the expected and actual inflation rates are equal at ____________ percent.


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Macroeconomics

ISBN: 9780133910445

15th Edition

Authors: Christopher T S Ragan

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