Long-Run Phillips Curve (HSC SSCE Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What fundamental trade-off does the Phillips curve demonstrate?
What fundamental trade-off does the Phillips curve demonstrate?
Low inflation & low unemployment
What is stagflation?
What is stagflation?
High inflation with high unemployment
What type of inflation did the original Phillips curve ignore?
What type of inflation did the original Phillips curve ignore?
Cost-push inflation
Which unemployment type is NOT part of the natural rate?
Which unemployment type is NOT part of the natural rate?
Cyclical unemployment
What shape is the long-run Phillips curve?
What shape is the long-run Phillips curve?
Vertical at natural rate
When workers expect inflation, what do they demand?
When workers expect inflation, what do they demand?
Higher wages to compensate
In the worked example, unemployment fell from to . What happened long-term?
In the worked example, unemployment fell from to . What happened long-term?
Returned to with higher inflation
What is hysteresis in the Phillips curve context?
What is hysteresis in the Phillips curve context?
Temporary joblessness becoming permanent
What policies genuinely reduce long-term unemployment?
What policies genuinely reduce long-term unemployment?
Supply-side & microeconomic reforms
What is the RBA's inflation target band?
What is the RBA's inflation target band?
annual inflation