Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

homework help Select the correct statements Select one or more: a. An increase in taxes (T) causes the IS curve to shift up. b. Other

homework help
image text in transcribed
Select the correct statements Select one or more: a. An increase in taxes (T) causes the IS curve to shift up. b. Other things being equal, a large increase in the price of oil increases the natural rate of unemployment. c. If (YYn) is equal to zero, then actual unemployment is equal to the natural unemployment rate. d. With an accelerationist Phillips Curve, at the natural rate of unemployment, inflation is neither rising nor falling. e. Okun law says that the higher output, the higher the unemployment rate. f. If (Yn) is greater than zero, than (uun) is greater than zero. 9. In a medium-run equilibrium, the rate of inflation is stable and equal to the Central Bank's target. h. In reality, the Central Bank can always act to keep output equal to potential output. i. If the output gap is negative (YYn is lower than zero), then unemployment is above the natural rate (u-un is positive) j. It is easier for the Central Bank to reach its inflation target if expectations of inflation are anchored. k. If the output gap is positive, inflation is higher than expected inflation

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

7th Edition

978-0470477151, 978-0-470-5562, 470556242, 0-470-55624-2, 9780470556245, 978-0470507018

More Books

Students also viewed these Accounting questions