The very low inflation that the U.S. experienced in 2009 and 2010
a. appears to have reduced expected inflation, and the short-run Phillips curve shifted downward as a result.
b. appears to have reduced expected inflation, and the short-run Phillips curve shifted upward as a result.
c. does not appear to have reduced expected inflation, and the short-run Phillips curve remained relatively stable as a result.
d. does not appear to have reduced expected inflation, but the short-run Phillips curve shifted dramatically nevertheless.
c
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Refer to Table 2-7. What is Minnie's opportunity cost of making a hat?
A) 1/5 of an umbrella B) 1/4 of an umbrella C) 4 umbrellas D) 10 umbrellas
If a household's money income changes and prices do not change, what happens to the household's real income and budget line?
What will be an ideal response?
If external benefits are taken into account in the market
A. the supply curve would shift to the left. B. the demand curve would shift to the right. C. the supply curve would become vertical. D. the demand curve would shift to the left.
A price index is the
A. cost of a market basket of goods today. B. cost of a market basket of goods and services today expressed as a percentage of the cost of the same market basket during a base year. C. year that is chosen as the point of reference for comparison of prices in other years. D. cost of a market basket of goods and services a year ago expressed as a percentage of the cost of the same market basket today.