The long-run Phillips curve would shift to the left if
a. the money supply growth rate increased or labor markets become more flexible.
b. the money supply growth rate increased but not if labor markets become more flexible.
c. labor markets become more flexible but not if the money supply growth rate increased.
d. None of the above is correct.
c
You might also like to view...
As suppliers and potential suppliers of exhaustible resources continually calculate whether to extract now or in future, and how much to extract, an equilibrium arises when:
a. the cost of extracting such resources is equal to its price. b. the rate of return for such resources equals the rate of interest on alternative uses of the funds. c. the cost of extracting such resources is equal to the price of the commodity using these resources. d. the price of such resources is equal to the rate of interest of bank accounts and other interest-bearing investments. e. the rate of return on alternative investments is equal to the cost of extracting such resources.
Which of the following is true? a. The tax multiplier is smaller than the government spending multiplier
b. The government cannot stimulate consumer spending through tax cuts. c. The government spending multiplier is smaller than the tax multiplier. d. The government can stimulate consumer spending through decreases in transfer payments.
If effective, a government-set price ceiling will lower equilibrium price and quantity in a market.
Answer the following statement true (T) or false (F)
Which one of the following would shift the aggregate demand curve to the left?
A. an increase in the money supply B. an increase in government spending C. an increase in exports D. an increase in taxes