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
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What is a positive statement? Give an example
What will be an ideal response?
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
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?
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