If the Federal Reserve chooses to fight high unemployment with expansionary monetary policy and firms and consumers expect this policy to increase inflation, which of the following would you expect to see?
A) an upward shift of the short-run Phillips curve
B) a downward shift of the short-run Phillips curve
C) a decrease in the long-run aggregate supply curve
D) Both B and C are correct answers.
A
Economics
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A) Ergonomics B) Econometrics C) Macroeconomics D) Microeconomics
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Suppose C = 1000 + .9Y, G = 400, I = 100, (X – IM) = 0, and there are no income taxes. The equilibrium level of national income is
a) 15,000 b) 13,500 c) 1,500 d) 5,000 e) 4,500
Economics