The Phillips Curve will shift downward if
A. the overall employment rate remains unchanged.
B. the expected inflation rate falls.
C. the unexpected inflation rate rises.
D. the price level falls.
Answer: B
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If both imports and exports rose, a. AD would decrease
b. AD would increase. c. AD would decrease if exports rose more than imports. d. AD would increase if exports rose more than imports.
If a firm is able to charge a higher price for its output, all else equal, the value of the marginal product of labor will decrease to offset the higher price
a. True b. False Indicate whether the statement is true or false
By studying the effects of choice architecture, we can:
A. blend the ideas of psychology with core economic beliefs. B. expand the simplifying assumption that people always make the choices that are best for themselves. C. open the possibility that we can no longer tell if someone is making a mistake or choosing something that is maximizing his utility. D. All of these statements are true.
If a developing country makes its currency fully convertible, it runs the risk of having too:
A. high levels of domestic saving and investment. B. much domestic saving and not enough domestic investment. C. low levels of domestic saving and investment. D. little foreign investment.