Apply the Principle: The Philips Curve Due in Week 7 worth 60 points
In the Ten Principles video, Dr. Todd Buchholz and Dr. Caroline Hoxby debated the very existence of the Phillips Curve.
Dr. Hoxby indicated she was taking bets that the Phillips Curve is alive and well. The problem may be that it moves around and possibly changes shape occasionally.
Policy makers like Congress and the Federal Reserve seek to steer the U.S. economy to a sweet spot where we have low unemployment and only moderate inflation. The Phillips Curve is supposed to describe the trade-off between inflation and unemployment. Does it?
Read the Business Insider article: Japan can help us better understand one of the biggest puzzles facing the US economy http://www.businessinsider.com/phillips-curve-us-japan-larry-hatheway-gam-2017-6
1. Using data from the Bureau of Labor Statistics, what is the current level of unemployment? Be sure to include the link to where you have found your information.
2. Using data from the Bureau of Labor Statistics, what is the current level of inflation? Be sure to include the link to where you have found your information.
3. Are these high or low compared to historical averages in the United States? 4. Should policy makers ignore the ‘historically observed Phillips Curve relationship’ and
push unemployment even lower? Explain your thoughts.
Apply the Principle: The Philips Curve
60 points Novice Competent Proficient
Using data from the Bureau of Labor Statistics, what is the current level of unemployment? 10 points
Answer is not
submitted or is
incorrect.
Answer is correct but
is not from the BLS.
Answer is correct.
Using data from the Bureau of Labor Statistics, what is the current level of inflation? 10 points
Answer is not
submitted or is
incorrect.
Answer is correct but
is not from the BLS.
Answer is correct.
Are these high or low
compared to U.S.
historical averages?
Answer is not
submitted or is
incorrect.
Answer is correct.
http://www.businessinsider.com/phillips-curve-us-japan-larry-hatheway-gam-2017-6
20 points
Should policy makers
ignore the ‘historically
observed Phillips
Curve relationship’
and push
unemployment even
lower? Explain your
thoughts.
20 points
Answer is not
submitted or is
incorrect.
Conclusion is logical
but the explanation is
incomplete.
Answer is correct.
Opinion is logical.
Explanation is
complete and well
thought out.
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