If aggregate demand decreases and expectations regarding inflation remain constant
A. the long-run Phillips curve shifts to the right.
B. the economy moves along the short-run Phillips curve.
C. the short-run Phillips curve shifts to the right.
D. the short-run Phillips curve shifts to the left.
Answer: B
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"Natural unemployment" includes those out of work because of
A) expected or normal turnover which will always characterize a part of the labor force. B) structural unemployment caused by normal technological change in production. C) a recession. D) A and B.
In 1906, the Hepburn Act
(a) Required the federal government to set "fair rates" for customers regardless of geographical location. (b) Required the federal government to set rates that promised a positive rate of return to railroads. (c) Granted the power to set maximum rates in the railroad industry to the federal government. (d) Granted the power to set maximum rates in the railroad industry to the leading railroad tycoons.
Market demand is the sum of the individual demands of all consumers in a market
Indicate whether the statement is true or false
According to the income-expenditure approach, ________ reduce consumption and other elements of aggregate expenditures, resulting in a ________ in real GDP demanded. Thus the aggregate demand curve is ________
a. lower prices; decrease; upward-sloping b. higher prices; increase; downward-sloping c. higher prices; decrease; downward-sloping d. higher prices; increase; upward-sloping