Question 1
What is the long-term effect of a rightward shift in the aggregate demand curve due to stimulus?
Question 2
What does full employment imply in the context of the Long Run Phillips Curve?
Question 3
What typically triggers a rightward shift in the short run Phillips Curve?
Question 4
Following the breakdown of the Phillips Curve in the 1970s, how did economists revise their understanding of it?
Question 5
At what point does the Short Run Aggregate Supply (SRAS) curve typically intersect the Long Run Aggregate Supply (LRAS) curve?
Question 6
In the aggregate demand and aggregate supply model, what does the horizontal axis represent?
Question 7
How is the Long Run Phillips Curve represented and what does it imply?
Question 8
What happens to the aggregate demand curve during a government stimulus?
Question 9
What do strong economic conditions typically indicate in the short run Phillips Curve?
Question 10
What economic phenomenon in the 1970s challenged the original Phillips Curve concept?
Question 11
What key economic concept did Bill Phillips' research highlight in the 1950s?
Question 12
What role do wage negotiations play in the shift of the short run Phillips Curve?
Question 13
How can a demand shock impact unemployment and inflation in the short run?
Question 14
What is the effect of operating above potential output in the short run?
Question 15
How does the economy return to full employment after a demand shock in the long run?