Refer to Figure 17-2. Suppose the economy is at point A in the figure above. Which of the following is true?
A) The long-run Phillips curve will shift to the right.
B) The short-run Phillips curve will shift to the right.
C) The short-run Phillips curve will shift to the left.
D) The long-run Phillips curve will shift to the left.
E) Actual inflation and expected inflation are the same.
E
You might also like to view...
When money is accepted as payment in a market transaction, it is functioning as a
A) store of value. B) unit of accounting. C) medium of exchange. D) unit of investment.
Governments can discourage consumption of certain goods by:
A. a subsidy to consumers in those markets. B. taxing substitute goods. C. imposing a minimum price above the equilibrium price. D. None of these policies decrease consumption of goods.
What is the major neoclassical assumption?
a. Prices are flexible. b. Prices are sticky. c. Prices are rigid. d. Prices do not change.
The poverty line is
A. the percentage of households with income insufficient to provide an adequate standard of living. B. that level of income just sufficient to provide a family with a minimally adequate standard of living. C. the amount of money the poor earn from work. D. the amount of money that would have to be transferred to poor households to lift them out of poverty.