Which of the following is true about the short-run Phillips curve?
a. The Fed can only shift the curve in the short run.
b. In the short run, the Fed can shift the curve, but in the long run, the Fed can only move along it.
c. In both the short run and the long run, the Fed can only shift the curve, it can never move along the curve.
d. In both the short run and the long run, the Fed can only move the economy along the curve; it can never shift the curve.
e. In the short run, the Fed can move the economy along the curve, but in the long run, the Fed can only chose which short run Phillips curve to be on.
E
You might also like to view...
Refer to Table 13-4. Victoria's profit-maximizing quantity sold (Q) and price (P) are
A) Q = 4; P = $6. B) Q = 5; P = $5. C) Q = 6; P = $4. D) Q = 3; P = $7.
Schooling is subsidized in the United States in part
A) so that the golden rule capital level can be reached. B) because otherwise people would not get educated. C) because there is a constitutional right to education. D) because there is a positive externality from schooling.