Economics 0.0 / 5 ? AllUniversityOther Created by: NickCreated on: 11-05-13 14:48 What is the Keynes-Phillips orthodoxy? Inflation cannot occur when there is large scale unemployment 1 of 9 How did Friedman counter the Keynes-Phillips orthodoxy? He explained the co-existence of high unemployment and high inflation by using excessive money growth. 2 of 9 Why is the Phillips inflation-unemployment curve described as L shaped? It reaches a point where workers won't offer their services 3 of 9 Which description is usually given for y<1? the Money Illusion: people are deluded about wage and price rises 4 of 9 What is the reservation wage? The minimum working wage people are willing to accept 5 of 9 The longer a person remains unemployed... ...It is likely that their reservation wage will decrease 6 of 9 A rise in benefits to unemployed workers may mean... ... an increase in unemployment if this is above reservation wages of those workers 7 of 9 If the actual inflation rate is higher than the expected inflation rate... ... unemployment will fall 8 of 9 You reach the natural rate of unemployment when.. the actual inflation rate = expected inflation rate 9 of 9
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