An increase in the expected inflation rate
A) leads to a movement downward along the short-run Phillips curve.
B) shifts the short-run Phillips curve downward.
C) shifts the long-run Phillips curve upward.
D) shifts the short-run Phillips curve upward.
E) leads to a movement upward along the short-run Phillips curve.
D
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In order to fight high inflation the Fed should _______; in order to fight high unemployment the Fed should _______.
A. increase the growth rate of the money supply; increase the growth rate of the money supply B. decrease the growth rate of the money supply; increase the growth rate of the money supply C. increase the growth rate of the money supply; decrease the growth rate of the money supply D. decrease the growth rate of the money supply; decrease the growth rate of the money supply
A main cause of the cost disease of personal services is
a. the change from an agrarian to an industrial society. b. labor-saving innovations in the service industries. c. the unevenness in growth of productivity in the economy. d. massive increases in industrial production at the expense of consumer goods production.