What is the relationship between the short-run Phillips curve and the long-run Phillips curve?
What will be an ideal response?
Along the short-run Phillips curve, the expected inflation rate is constant. When the expected inflation rate changes, the short-run Phillips curve shifts. The long-run Phillips curve is a vertical line at the natural rate of unemployment. The short-run Phillips curve intersects the long-run Phillips curve at the expected inflation rate.
Economics
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Explain how a market helps determine which goods and services will be produced, how to produce them, and who gets them
What will be an ideal response?
Economics
A restrictive monetary policy is designed to shift the:
A. aggregate demand curve rightward. B. aggregate demand curve leftward. C. aggregate supply curve rightward. D. aggregate supply curve leftward.
Economics