On the modern Phillips curve, the initial impact of government policies to stimulate the economy 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
A
You might also like to view...
If there are five firms in an industry, each with a market share of 20 percent, the Herfindahl-Hirschman Index (HHI) of concentration is
A) 2000. B) 400. C) 100. D) 20.
According to new growth theory, firms accumulate the efficient level of both physical and knowledge capital
Indicate whether the statement is true or false
Explain how changes in the proportion of contracts that are indexed affect how a given change in monetary policy will affect economic activity
What will be an ideal response?
A demand curve that is horizontal indicates that the commodity
A) has few substitutes. B) must be very cheap. C) is a necessity. D) has a large number of substitutes.