On a Phillips curve diagram, a decrease in the rate of inflation, other things being equal, is represented by a(n):
A. upward shift of the Phillips curve.
B. downward movement along Phillips curve.
C. upward movement along the Phillips curve.
D. downward shift of the Phillips curve.
Answer: B
You might also like to view...
If total utility from consuming two cups of coffee is 20 utils, and if the total utility from consuming three cups of coffee is 25 utils, then which of the following is the marginal utility of the third cup of coffee? a. 0
b. 5. c. 10. d. 20. e. 25.
The effect of substitution bias is that the rise in the price of a fixed basket of goods over time tends to ___________________ the rise in a consumer’s true cost of living, because it doesn’t take into account that the person can substitute between goods according to changes in their relative prices.
a. stabilize b. understate c. overstate d. reduce