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Econ 100b

Created 4/30/1996
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Brad De Long's Home Page


P-Set Five Answers

Aggregate Supply

Economics 100b; Spring 1996; Brad DeLong


1. Briefly summarize (one sentence on each) three reasons why businesses in the aggregate react to increases in total demand by increasing their prices and increasing the quantities they produce and sell (as opposed to increasing prices alone).


2. What is the Phillips curve? What is the difference between the original Phillips curve and the accelerationist Phillips curve?


3. What is the difference between the short run and the long run Phillips curve?


4. When the economy experiences a positive "supply shock", does:

5. When the economy experiences a positive "demand shock", does:

6. Does the short-run inflation-unemployment Phillips curve for the U.S. today lie:

7. What is the principal determinant of the location of the short run Phillips curve?


8. What is the principal determinant of the slope of the short run Phillips curve?


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Econ 100b

Created 4/30/1996
Go to
Brad De Long's Home Page


Professor of Economics J. Bradford DeLong, 601 Evans
University of California at Berkeley
Berkeley, CA 94720-3880
(510) 643-4027 phone (510) 642-6615 fax
delong@econ.berkeley.edu
http://www.j-bradford-delong.net/