Suppose expected inflation and actual inflation are both low, and unemployment is at its natural rate. If the Fed then pursues an expansionary monetary policy, which of the following results would be expected in the short run?
a. The short-run Phillips curve would shift to the left.
b. The short-run Phillips curve would shift to the right.
c. The economy would move up and to the left along a given short-run Phillips curve.
d. The economy would move down and to the right along a given short-run Phillips curve.
c
Economics
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Paper money in the U.S. is: a. fiat money
b. more than half of M2. c. only partially backed by gold and silver in Fort Knox. d. convertible into specie (gold or silver) at the holder's request.
Economics
Which of the following macroeconomic variables is not in the equation of exchange?
a. GDP price index. b. Real GDP. c. Real exchange rate. d. Money supply. e. All of the above are part of the equation of exchange.
Economics