Refer to the graph shown. If expected inflation increases from 0 percent to 6 percent, the:
A. economy will move from point B to point C.
B. short-run Phillips curve will shift from PC2 to PC1.
C. short-run Phillips curve will shift from PC1 to PC2.
D. economy will move from point C to point A.
Answer: C
Economics
You might also like to view...
In a world with money and bonds only
A) it is not risky to hold money. B) it is risky to hold money. C) risk is an important factor in the demand for money. D) there is no relationship between risk and holding money. E) assets become meaningless.
Economics
For which of the following is demand most likely to be price inelastic?
a. lamb b. meat c. veal d. pork e. beef
Economics