What impact does expansionary monetary policy have on the short-run Phillips curve if consumers and firms expect the expansionary monetary policy to increase inflation?
A) The short-run Phillips curve is not affected by expansionary monetary policy.
B) The short-run Phillips curve shifts down.
C) The short-run Phillips curve shifts up.
D) The short-run Phillips curve becomes the long-run Phillips curve.
C
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The manager of a large luxury hotel chain is currently negotiating a four year contract with a linens supplier. The linens company will supply fresh laundered bedding and towels to the hotel over a four year period; however, the hotel chain can ends its contract with the linens company at the end of the first, second, or third years if the linens company does not supply quality linens. What can
the manager of the hotel chain do to avoid the end-game problem? A) Pay the linens company in full at the beginning of the first year. B) Pay the linens company one half of the contract amount after the first year and the remaining half after the second year. C) Pay the linens company in full after the first year. D) Offer to renew the contract if the linens company provides quality linens all four years.
It can be shown that average revenue and price are always equal
a. True b. False Indicate whether the statement is true or false
Which of the following is an example of a price control policy?
a. Increasing the income tax rate b. Setting a minimum wage level c. Mandating a 2 percent tax on imported automobiles d. Mandating higher taxes on alcoholic beverages in the state
Monetizing the debt has what effect on the economy?
A. Slow increase in AS with steady inflation B. Rapid increase in AD with an increase in inflation C. Rapid increase in AS with a drop in inflation D. Decrease in AD with an increase in inflation