If the expected rate of inflation rose at the same time the natural rate of unemployment rose, the short-run Phillips curve
A) would shift down.
B) would shift up.
C) would not move.
D) might shift up or down or not move, depending on which effect was larger.
B
You might also like to view...
Which of the following is NOT true about the duties the Fed performs for the federal government?
A) The U.S. Treasury has a checking account at the Fed. B) The Federal Reserve aids in the purchase and sale of certain government securities. C) The U.S. Treasury controls the Fed. D) The Federal Reserve is the banker and fiscal agent of the federal government.
Elizabeth is the owner of a small business, and she is 35 years old. She doesn't smoke cigarettes, and she often spends her weekends with her family camping at the local state park. According to public choice theory, which of the following four politicians for a public office would Elizabeth be most likely to vote for in the upcoming election?
a. Politician A proposes increasing the tax on small businesses and using the money to provide additional benefits for the elderly. b. Politician B proposes increasing the tax on small businesses and using the money to improve the camping facilities at the state park. c. Politician C proposes increasing the excise tax on cigarettes and using the money to improve the camping facilities at the state park. d. Politician D proposes increasing the excise tax on cigarettes and using the money to provide additional benefits for the elderly.