Take Test: Extra Credit Spreadsheet Opportunity

QUESTION 1 Close Window Save and Submit 1 points Save Answer What is the correlation coeﬃcient between the change in the core inflation rate and the

unemployment rate 1987 to 2010? (The coeﬃcient should be between -1.0 and +1.0; use 2

decimal places. Don’t type a “+” sign. Use a “-“ sign if the answer is negative.) QUESTION 2 2 points Save Answer The correlation coeﬃcient, the trendline slope and slope coeﬃcient imply that higher

unemployment rates correspond to decreases in the core inflation rate.

True

False QUESTION 3 2 points Save Answer According to the Phillips Curve trendline or its equation, at what unemployment rate will the

change in the inflation rate equal zero? This is an estimate of the unemployment rate at potential

output. (Type your answer as a percent, that is, 6.5 not 0.065. Use 1 decimal place. Don't use a

"%" or a “+” sign.) QUESTION 4 1 points Save Answer According to the Phillips Curve trendline or its equation, the unemployment rate at potential output

is close to 5% (within +/- 0.5 points). True

False QUESTION 5 2 points Save Answer According to the Phillips Curve for 1987-2010, at the actual unemployment rates from 2011 to

2014,

a. the core inflation rate should have increased each year.

b. the core inflation rate should have decreased each year.

c. the core inflation rate should have remained about the same each year. QUESTION 6 2 points Save Answer Which of the following is true?

a. The 1987-2010 Phillips Curve trendline says that the inflation rate should have decreased in

each year from 2011 to 2014, and in fact inflation did decrease in each of those years.

b. The 1987-2010 Phillips Curve trendline says that the inflation rate should have increased in

each year rom 2011 to 2014, but in fact inflation decreased in some of those years.

c. The 1987-2010 Phillips Curve trendline says that the inflation rate should have decreased in

each year from 2011 to 2014, but in fact inflation increased in some of those years.

d. The 1987-2010 Phillips Curve trendline says that the inflation rate should have increased in

each year from 2011 to 2014, and in fact inflation did increase in each of those years. QUESTION 7 1 points Save Answer What is the correlation coeﬃcient between the change in the unemployment rate and the real GDP growth rate 1987 to 2010? (The coeﬃcient should be between -1.0 and +1.0; use 2 decimal

places. Don’t type a “+” sign. Use a “-“ sign if the answer is negative.) QUESTION 8 2 points Save Answer The correlation coeﬃcient, the trendline slope and slope coeﬃcient imply that higher real GDP

growth rates correspond to decreases in the unemployment rate.

True

False QUESTION 9 1 points Save Answer According to the Okun’s Law trendline or its equation, how fast must real GDP grow in order to

hold the unemployment rate constant from one year to the next? (Type your answer as a percent,

that is, 1.5 not 0.015. Use 1 decimal place. Don't use a "%" or a “+” sign. Don’t use a “-“ sign

because your answer won’t be negative—that’s a hint!) QUESTION 10 2 points Save Answer According to Okun’s Law for 1987-2010, at the actual real GDP growth rates during 2011 to 2016,

a. the unemployment rate should have increased each year.

b. the unemployment rate should have decreased each year.

c. the unemployment rate should have remained about the same each year. QUESTION 11 2 points Save Answer Which of the following is true?

a. The 1987-2010 Okun’s Law trendline says that the unemployment rate should have

decreased in each year from 2011 to 2016, but in fact unemployment increased in each of

those years.

b. The 1987-2010 Okun’s Law trendline says that the unemployment rate should have

increased in each year from 2011 to 2016, and in fact unemployment did increase in each of those years.

c. The 1987-2010 Okun’s Law trendline says that the unemployment rate should have

decreased in each year from 2011 to 2015, and in fact unemployment did decrease in each

of those years.

d. The 1987-2010 Okun’s Law trendline says that the unemployment rate should have

increased in each year from 2011 to 2016, but in fact unemployment decreased in each of

those years. QUESTION 12 2 points Save Answer Which of the following is true?

a. Both the Phillips Curve and Okun’s Law continued to make accurate predictions about the

economy from 2011 to 2016. The recovery from the Great Recession progressed as

expected.

b. Neither the Phillips Curve nor Okun’s Law made accurate predictions about the economy in

many years from 2011 to 2016. The economy appears to have changed since the end of the

Great Recession.

c. The Phillips Curve made accurate predictions for 2011-2016, but Okun’s Law did not.

Inflation behaved as expected, but unemployment rates did not in many years from 2011 to

2016.

d. Okun’s Law made accurate predictions for 2011-2016, but the Phillips Curve was not.

Unemployment rates behaved as expected, but inflation rate did not in many years from 2011

to 2016. Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Close Window Save and Submit

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