If people correctly anticipate that inflation will fall by 1%, then
a. the short-run Phillips curve shifts right and unemployment is unchanged.
b. the short-run Phillips curve shifts right and unemployment rises.
c. the short-run Phillips curve shifts left and unemployment is unchanged.
d. the short-run Phillips curve would shift left and unemployment falls.
c
You might also like to view...
The table above shows the distribution of income in Swacko. The government of Swacko imposes a 20 percent tax on people with the highest 40 percent of income
The government then distributes 40 percent of the tax collected to the lowest 20 percent and 30 percent to the second 20 percent and the middle 20 percent. After the redistribution, the Lorenz curve for income ________. A) is equal to the line of equality B) equals the Lorenz curve for wealth C) is closer to the line of equality D) is above the line of equality
The first structured investment vehicle (SIV) was set up by ________ in 1988
A) J.P. Morgan B) Chase C) Citigroup D) Goldman Sachs