Suppose Congress decides to reduce government expenditures by reducing its purchases of weapons systems. Which of the following would you expect to occur as a result of this change?
a. The economy will move up and to the left along the short-run Phillips Curve.
b. The economy will move down and to the right along the short-run Phillips Curve.
c. The short-run Phillips Curve will shift to the
left.
d. The short-run Phillips Curve will shift to the right.
b
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