The Phillips Curve (OCR A-Level Economics): Quizzes
📚Quizzes
Practise the questions
12 questions from this quiz
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Practise the questions
12 questions from this quiz
What does NAIRU stand for?
What does NAIRU stand for?
Non-Accelerating Inflation Rate of Unemployment
Which types of unemployment does the natural rate include?
Which types of unemployment does the natural rate include?
Frictional and structural
What type of unemployment is excluded from the natural rate?
What type of unemployment is excluded from the natural rate?
Cyclical unemployment
What happens when unemployment falls below the NAIRU?
What happens when unemployment falls below the NAIRU?
Wages and prices start to rise rapidly
In the Keynesian AS horizontal portion, what do AD increases cause?
In the Keynesian AS horizontal portion, what do AD increases cause?
Higher output, not higher prices
In Keynesian AS at full employment, what do AD increases cause?
In Keynesian AS at full employment, what do AD increases cause?
Only higher prices (inflation)
What is the shape of the neo-classical AS curve?
What is the shape of the neo-classical AS curve?
Vertical at full employment output
In neo-classical view, what determines long-run output?
In neo-classical view, what determines long-run output?
Technology, resources, institutions
What policy approach does Keynesian economics advocate?
What policy approach does Keynesian economics advocate?
Active government intervention
What relationship exists in the short-run Phillips Curve?
What relationship exists in the short-run Phillips Curve?
Inverse between inflation & unemployment
What is the shape of the long-run Phillips Curve?
What is the shape of the long-run Phillips Curve?
Vertical at natural rate of unemployment
Is there a long-term trade-off between inflation and unemployment?
Is there a long-term trade-off between inflation and unemployment?
No, none in the long run