If the short-run Phillips curve shifts to the right, we can conclude that:
a. the trade-off between inflation and unemployment has improved over time.
b. the trade-off between inflation and unemployment has worsened over time.
c. the inflation rate associated with any given level of unemployment has declined.
d. the unemployment rate associated with any given inflation rate has declined.
e. the trade-off between inflation and unemployment has remained unchanged.
b
You might also like to view...
For a good whose production creates an external cost, the efficient quantity of output is
A) where the market demand curve and the market supply curve intersect. B) where the marginal social cost curve and marginal benefit curve intersect. C) as low as possible. D) zero. E) the amount of production so that the marginal social benefit exceeds the marginal social cost by as much as possible.
In May, Jones thinks the upcoming summer's corn crop will be much lower, and the November corn price will be much higher than most people expect. To act on his belief, Jones would
A) sell November corn futures. B) buy November corn futures. C) simultaneously buy and sell November corn futures. D) profit only by waiting to see if his original conclusion was correct.