In the graph showing the Phillips curve after a positive supply shock, we can see that a positive supply shock would cause ______.
a. a leftward shift in the Phillips curve
b. a rightward shift in the Phillips curve
c. a movement to a point further up the Phillips curve
d. a movement to a point further down the Phillips curve
a. a leftward shift in the Phillips curve
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Which of the following was not a major factor in explaining the decline of death rates in the U.S. in the late 19th and early 20th century?
a. urbanization b. improvements in sanitation c. improvements in medical treatments d. Both a and c are correct.
Assume that the central bank sells government securities in the open market. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and net nonreserve-related borrowing/lending in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. The real risk-free interest rate remains the same and net nonreserve-related borrowing/lending balance becomes more positive (or less negative). b. The real risk-free interest rate falls and net nonreserve-related borrowing/lending balance becomes more negative (or less positive). c. The real risk-free interest rate rises and net nonreserve-related borrowing/lending balance becomes more negative (or less positive). d. The real risk-free interest rate and net nonreserve-related borrowing/lending balance remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.