2013, Question 3 · 6 points
Expected inflation and the Phillips curve
Draw a short-run Phillips curve and show what higher expected inflation does to it and to the long-run curve, decide how nominal and real rates on new loans respond, and compute a real interest rate from given figures.
This exam had three free-response questions in a 10 minute planning period plus 50 minutes of writing, with a suggestion to spend about half the time on Question 1 and split the rest evenly between Questions 2 and 3. The current exam has 3 free-response questions in 60 minutes. The skills these questions practice still count.
Lessons this question draws on
1 Read the question
The question is College Board's, from the 2013 exam. It starts on page 3 of the PDF. College Board no longer posts this exam, so it opens from the copy of College Board's PDF that the Internet Archive saved on September 25, 2023.
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Scoring guidelines (PDF, page 5) What the exam readers saw (Student Performance Q&A)
Question, scoring guidelines and Chief Reader report: College Board, from the Internet Archive. The title, summary are ours.