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Question 63 (1 point) Figure 35-691 Phillips Curve SRAS 20 c PRICE LEVEL 130 INFLATION RATE (Percent) 5 115 o LOWAD High AD 10 QUANTITY

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Question 63 (1 point) Figure 35-691 Phillips Curve SRAS 20 c PRICE LEVEL 130 INFLATION RATE (Percent) 5 115 o LOWAD High AD 10 QUANTITY OF OUTPUT UNEMPLOYMENT RATE Percent) Refer to Figure 35-691. Suppose points J and K on the right-hand graph represent two possible outcomes for an imaginary economy in the year 2020, and those two points correspond to points and A, respectively, on the left-hand graph. Also, suppose we know that the price index equaled 120 in 2019. Then the numbers 115 and 130 on the vertical axis of the left-hand graph would have to be replaced by 155 and 175, respectively. 138 and 156, respectively. 1375 and 154.75, respectively 135 and 150, respectively. Question 64 (1 point) Ceteris paribus, if there is an increase in the money supply growth rate that is larger than expected, then in the short run the natural rate of unemployment rises. the natural rate of unemployment falls. the unemployment rate will be above its natural rate. the unemployment rate will be below its natural rate. Question 65 (1 point) When the Federal Reserve decreases the federal funds target rate, the lower rate is achieved through Osales of government bonds, which reduces interest rates and causes people to hold less money. O purchases of government bonds, which reduces interest rates and causes people to hold less money. O purchases of government bonds, which reduces interest rates and causes people to hold more money. Osales of government bonds, which reduces interest rates and causes people to hold more money. Question 66 (1 point) Which of the following are vertical? Both the long-run Phillips curve and the long-run aggregate supply curve Neither the long-run Phillips curve nor the long-run aggregate supply curve The long-run Phillips curve, but not the long-run aggregate supply curve The long-run Phillips curve, but not the long-run aggregate supply curve

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