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.
Correct Answer:

Verified
Correct Answer:
Verified
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