On the modern Phillips curve, the initial impact of productivity improvements that lower the costs of production is shown by ________
A) an upward movement along the Phillips curve to a higher inflation rate
B) an upward shift of the Phillips curve leading to higher inflation rates for any unemployment rate
C) a downward shift of the Phillips curve leading to lower inflation rates for any unemployment rate
D) a downward movement along the Phillips curve to higher unemployment rates
E) none of the above
C
You might also like to view...
A government is running a budget deficit if:
A. government revenue exceeds government spending. B. imports exceed exports. C. exports exceed imports. D. government revenue is less than government spending.
When a developing country relies on export promotion,
a. it concentrates on producing for its domestic market b. it builds its technological and educational base and then can make more complex products for export c. domestic producers have sufficient protection that they can afford to become inefficient d. its government must intervene more in markets e. None of the answers is correct
Refer to the above figure. If the government set a price floor of $3.50 per gallon, there would be
A) an excess quantity demanded equal to 100,000 gallons.
B) an excess quantity supplied equal to the distance BD.
C) an excess quantity supplied equal to the distance BF.
D) an excess quantity supplied equal to 100,000 gallons.
________ curves are derived while holding constant income, tastes, and the prices of other goods.
A. Demand B. Supply C. Production D. Distribution