ECO 3203- med run (exam 2)- fill in the blank Q's

The change in the unemployment rate is approximately equal to the __________ of the growth rate of output.

negative

The coefficient 0.4 is known as the __________.

Okun's coefficient

Annual output growth must be at least __________ percent to prevent the unemployment rate from rising.

3

When the unemployment rate is lower than the natural rate, inflation turns out to be __________ than expected.

higher

If the unemployment rate is higher than the natural rate, inflation turns out to be __________ than expected.

lower

An increase in the __________ is equivalent to an increase in the markup.

price of oil

An increase in the markup leads to lower real wages and a __________ natural rate of unemployment.

higher

__________ occurs when output falls and inflation rises at the same time

Stagflation

__________ leads to a shift in the Phillips curve by changing producers' pricing decisions.

Cost-push inflation

When θ=1, the Phillips curve becomes the __________ Phillips curve.

Accelerationist

As inflation became more persistent in the 1970s, expectations became __________.

de-anchored

__________ is a contractual provision that automatically increases wages with inflation.

wage indexation

The output gap is the difference between actual output YYY and __________ output YnY_nYn​.

natural

okun’s Law shows a relationship between unemployment and __________.

output

In the short run, an increase in the price of oil leads to __________ inflation.

higher

In the medium run, a permanent oil price increase leads to __________ output.

lower