Economics - Phillips Curve MCQ Test 1

1. What impact can a supply shock have on the Phillips Curve?

2. What is a potential implication of a negative supply shock on the Phillips Curve relationship?

3. Which of the following factors can shift the Short-Run Phillips Curve?

4. Which of the following best describes a 'deflationary gap'?

5. Which of the following best describes the 'Lipsey curve'?

6. Which economist is associated with the concept of 'rational expectations'?

7. What does the concept of 'hysteresis' suggest in the context of the Phillips Curve?

8. How do supply-side policies impact the Phillips Curve?

9. What does 'cost-push inflation' refer to?

10. What does the term 'stagflation' signify?

11. Which economic concept suggests that there is a trade-off between inflation and unemployment in the short run?

12. How can a supply shock impact the Phillips Curve?

13. What does the 'Lipsey curve' primarily illustrate?

14. What does the 'Long Run Phillips Curve' depict?

15. Which of the following best describes the 'New Keynesian' view on the Phillips Curve?

16. What can cause a movement along the Phillips Curve in the short run?

17. How can policymakers use the Phillips Curve in a practical sense?

18. Which term describes the situation when the economy is producing at its potential and the unemployment rate is at the natural rate?

19. What impact does a supply shock have on the Phillips Curve relationship?

20. In the context of the Phillips Curve, what is the 'natural rate of unemployment'?

21. In the context of the Phillips Curve, what does 'hysteresis' refer to?

22. What is the primary criticism of the Phillips Curve?

23. Which of the following best describes the concept of 'adaptive expectations' in relation to the Phillips Curve?

24. Who is credited with introducing the Phillips Curve concept?

25. How does the concept of 'adaptive expectations' relate to the Phillips Curve?

26. What is the concept of the 'Natural Rate of Unemployment' in the context of the Phillips Curve?

27. Which factor can potentially shift the Phillips Curve upwards?

28. Who originally proposed the Phillips Curve?

29. Which term describes a policy that aims to reduce inflation at the cost of increased unemployment in the short run?

30. What does the 'Non-Accelerating Inflation Rate of Unemployment' (NAIRU) represent?

31. What can cause the Phillips Curve to shift?

32. Who expanded upon A.W. Phillips' original work and introduced the concept of the 'expectations-augmented Phillips Curve'?

33. What does the concept of 'adaptive expectations' suggest in the context of the Phillips Curve?

34. Which critique suggests that the Phillips Curve relationship may shift over time?

35. How does the 'Long-Run Phillips Curve' differ from the 'Short-Run Phillips Curve'?

36. Which factor can cause the Phillips Curve to shift in the short run?

37. In the context of the Phillips Curve, what does 'stagflation' refer to?

38. What does the Phillips Curve primarily illustrate?

39. What is one limitation of relying solely on the Phillips Curve for policymaking?

40. What is one criticism of using the Phillips Curve for economic policy?

41. In a Phillips Curve model, what does a movement from point A to point B along the curve represent?

42. Who first introduced the concept of the Phillips Curve?

43. Which of these factors is least likely to cause a shift in the Phillips Curve?

44. How do rational expectations impact the effectiveness of using the Phillips Curve for policy purposes?

45. Who is credited with introducing the concept of the Phillips Curve?

46. What is the main implication of the 'Natural Rate Hypothesis' for the Phillips Curve?

47. Which economic theory suggests that there is no long-run trade-off between inflation and unemployment?

48. Which economist emphasized the role of supply shocks in influencing the Phillips Curve relationship?

49. What does the Natural Rate of Unemployment refer to?

50. Which of these factors can shift the long-run Phillips Curve?