The tradeoffs between rates of employment and inflation during the 1970s and 1980s forced economists to reassess their earlier beliefs about the Phillips curve to conclude that
a. the Phillips curve was upward sloping, not downward sloping as imagined
b. rather than there being one Phillips curve, there is a set of such curves
c. the expected trade-offs did not occur, meaning that policy to lower unemployment rates would not cause inflation
d. the aggregate supply curve was a horizontal-vertical (two sides of a right angle) curve, as Keynesians believed
e. the aggregate supply curve actually sloped downward because price levels fell whenreal GDP rose
B
You might also like to view...
The most recent data indicates households in the top fifth of the income distribution earn more than ten times as much income as those in the bottom fifth
a. True b. False
To close a recessionary gap using fiscal policy, the government can: a. increase government spending by the size of the gap
b. decrease government spending by the size of the gap. c. increase government spending by more than the size of the gap. d. increase government spending by less than the size of the gap. e. decrease government spending by more than the size of the gap.