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Given a Phillips Curve with Stable and Predictable Inflation and Unemployment

Question 142

Multiple Choice

Given a Phillips Curve with stable and predictable inflation and unemployment rate trade-offs, it appears that


A) an expansionary fiscal policy can shift the curve to the left.
B) a tight money policy can shift the curve to the right.
C) manipulating aggregate demand through fiscal and monetary policies has the effect of causing a movement along the curve.
D) manipulating aggregate demand through fiscal and monetary policies has the effect of shifting the curve.

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