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Social Studies, 04.12.2019 06:31 2Pallie2
1. the phillips curve shows that in the short-run:
a. unexpected changes in aggregate demand produce an inverse relationship between inflation and unemployment.
b. unexpected changes in aggregate demand produce a positive relationship between inflation and unemployment.
c. expected changes in aggregate demand produce a positive relationship between inflation and unemployment.
d. expected changes in aggregate demand produce an inverse relationship between inflation and unemployment.
2. suppose people expect the inflation rate to be 3 percent. the government engages in a one-time expansionary monetary policy in order to lower unemployment. once people realize what has happened:
a. the phillips curve will shift inward, causing unemployment to return to its natural rate.
b. there will be a movement along the phillips curve, causing the inflation rate to return to 3 percent.
c. the phillips curve will shift outward, causing unemployment to return to its natural rate.
d. there will be a movement down along the phillips curve, causing unemployment to return to its original level.
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1. the phillips curve shows that in the short-run:
a. unexpected changes in aggregate demand...
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