If there is a temporary adverse supply shock, then the short-run Phillips curve shifts to the
a. right. It remains to the right regardless of monetary policy.
b. right. It remains to the right if the central bank pursues expansionary monetary policy.
c. left. It remains to the left regardless of monetary policy.
d. left. It remains to the left if the central bank pursues expansionary monetary policy.
b
You might also like to view...
For a given domestic and foreign price level, a decrease in the nominal exchange rate ________ the real exchange rate.
A. decreases B. increases C. offsets any change in D. may either increase or decrease
Indicate whether each of the following situations would shift the supply curve to the left, to the right, or not at all
a. An increase in the price of an input b. An increase in productivity c. An increase in the price of a substitute in production d. A decrease in the expected future price of a product e. A decrease in the current price of the product
The best example of a perfectly competitive market would be the market for:
A. grain. B. shoes. C. computers. D. cameras.
In the nineteenth century, U.S. farmers were ordinarily debtors. Farmers typically borrowed from banks to develop new acreage and to be able to purchase necessary inputs prior to each growing season. Why did farmers generally support public policies that were inflationary?