In the graph showing the Phillips curve after a positive supply shock, we can see that a positive supply shock would cause ______.



a. an increase in inflation rate and a decrease in unemployment rate

b. a decrease in inflation rate and an increase in unemployment rate

c. an increase in both inflation rate and unemployment rate

d. a decrease in both inflation rate and unemployment rate


d. a decrease in both inflation rate and unemployment rate

Economics

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What is a positive statement? Give an example

What will be an ideal response?

Economics

The permanent-income hypothesis can reconcile the cross-section and time-series consumption studies by incorporating the reasonable assumption that at any one time many people are rich because they are enjoying unusually high ________ income, causing

them to have an unusually ________ saving ratio. A) permanent, high B) permanent, low C) transitory, high D) transitory, low

Economics

Explain why it is unwise to bid more than your valuation of the good in a sealed bid second-price auction

What will be an ideal response?

Economics

If the euro per dollar exchange rate changes from $1 = 0.8 euros to $1 = 0.7 euros, it implies that the euro has depreciated against the dollar

a. True b. False Indicate whether the statement is true or false

Economics