A rightward shift of the traditional Phillips Curve would suggest that:
A. the productivity of labor increased.
B. the rate of inflation is now higher at each rate of unemployment.
C. cost-push inflation decreased.
D. the rate of inflation is now lower at each rate of unemployment.
B. the rate of inflation is now higher at each rate of unemployment.
You might also like to view...
The reduction of the inflation rate is called
A) deflation. B) disinflation. C) unflation. D) reflation.
What is the marginal product of labor and what is the average product of labor
What will be an ideal response?
If we observe that interest rates rise but real investment spending still increases, what must have happened to the function relating investment to the interest rate?
A. It shifted to the left. B. There was a movement up the function relating investment to the interest rate. C. It shifted to the right. D. There was a movement down the function relating investment to the interest rate.
The SAS curve and the LAS curve
A) intersect at potential GDP. B) are parallel at potential GDP. C) are perpendicular to one another at potential GDP. D) None of the above answers is correct.