If the natural rate of unemployment falls,
a. both the short-run and long-run Phillips curves shift left.
b. the short-run Phillips curve shifts left, the long-run Phillips curve is unchanged.
c. the short-run Phillips curve is unchanged, the long-run Phillips curve shifts right.
d. the short-run and the long-run Phillips curves shift right.
a
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Assume that Japan and the United States are engaged in a system of flexible exchange rates. One US dollar will purchase how many Japanese Yen?
In a market economy, who decides what goods and services will be produced?
A) only the producers B) consumers and producers C) the government D) only consumers
If the yield curve has a mild upward slope, the liquidity premium theory (assuming a mild preference for shorter-term bonds) indicates that the market is predicting
A) a rise in short-term interest rates in the near future and a decline further out in the future. B) constant short-term interest rates in the near future and further out in the future. C) a decline in short-term interest rates in the near future and a rise further out in the future. D) a decline in short-term interest rates in the near future and an even steeper decline further out in the future.
"If you hadn't gone to dinner with your friends, you would have stayed home and watched television." It follows that
A) watching television is the opportunity cost of having dinner with your friends. B) the price of having dinner with your friends is more than the price you would have had to pay to watch television. C) the opportunity cost of having dinner with your friends is lower than the opportunity cost of watching television. D) it is less costly to watch television than to have dinner with your friends.