True or False:
1. The inverse relationship between the rate of unemployment and the rate of inflation is called the Phillips curve.
2. If output prices rise faster than money wages, real wages will fall, as will the unemployment rate.
3. According to the short-run Phillips curve, the cost of lower unemployment appears to be greater inflation, and the cost of lower inflation appears to be higher unemployment.
4. Along any particular Phillips curve, the slope and therefore the trade-off between unemployment and inflation is constant.
5. The Phillips curve concept was developed by looking at the relationship between inflation and wage rates.
6. A single short-run Phillips curve can accurately describe the behavior of the economy since 1969.
7. If aggregate demand stimulus occurs in a fully employed economy, the result will mostly be higher prices in the economy, even in the short run, if the Phillips curve is steep over the relevant range.
8. The Phillips curve shows the relationship between the rate of inflation and the rate of growth in real GDP.
9. The natural rate of unemployment is the level that will occur after the economy completely self-corrects from a change in aggregate demand.
10. If the government tried to maintain unemployment below its natural rate for a sustained period of time, it would accelerate inflation.