If a central bank had to give up its discretion and follow a rule that required it to keep inflation low,
a. the short-run Phillips curve would shift up.
b. the short-run Phillips curve would shift down.
c. the long-run Phillips curve would shift right.
d. the long-run Phillips curve would shift left.
b
You might also like to view...
If the Fed conducts a contractionary monetary policy, ________
A) the nominal interest rate will decrease B) demand for labor will increase C) banks will make fewer loans D) bank deposits will increase
An increase in input prices will cause
A) supply to shift rightward, equilibrium price to rise, and equilibrium quantity to fall. B) supply to shift leftward, equilibrium price to rise, and equilibrium quantity to fall. C) supply to shift rightward, equilibrium price to fall, and equilibrium quantity to rise. D) supply to shift leftward, equilibrium price to fall , and equilibrium quantity to rise.
When a firm or economy is operating efficiently, it is operating
a. outside its production possibilities frontier. b. inside its production possibilities frontier. c. on its production possibilities frontier. d. at the intersection of the production possibilities frontier and the vertical axis. e. at the intersection of the production possibilities frontier and the horizontal axis.
A decrease in demand would be represented by
A. an upward movement along the demand curve. B. the price of a good going up. C. a downward movement along the demand curve. D. a shift of the demand curve to the left.