3 Questions
In the IS-LM-Aggregate Supply model, the natural rate of unemployment is associated with:
The level of unemployment that exists when the economy is at its potential output
Friedman's Expectation Model is based on the idea that individuals form their expectations of future inflation based on:
Past inflation rates
Which concept suggests that individuals form their expectations of future economic conditions based on past experiences and past information?
Adaptive Expectations
Test your understanding of the IS-LM model, aggregate demand curve, determination of equilibrium national income and price level, long run Phillips curve, Friedman's expectation model, Tobin's modified Phillips curve, adaptive expectations, and rational expectations.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
