We would be most likely to experience a shift from one Phillips curve to another if the government attempts to
a. reduce the unemployment rate and workers, fearing inflation, react by bargaining for higher wages
b. reduce the unemployment rate and consumers, fearing higher taxes, cut their spending
c. reduce the unemployment rate and firms hire more employees without having to raise wage rates
d. reduce the unemployment rate and the inflation rate simultaneously
e. reduce the inflation rate and firms respond by making no employment changes
A
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List and briefly describe the five factors of production
What will be an ideal response?
An increase in the population of an economy can shift the demand curves for certain goods and services to the right
a. True b. False Indicate whether the statement is true or false
A particular brand of shampoo costs 6 Canadian dollars in Toronto. The nominal exchange rate is about 1.2 and the real exchange rate is .90 . These numbers imply that the U.S. dollar price of the same shampoo is about
a. $7.99 b. $6.49 c. $5.39 d. $4.49
Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C