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Question 90

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Exhibit: AD-AS Shifts
Use the following to answer questions : Exhibit: AD-AS Shifts -(Exhibit: Short-run Phillips Curve) As the short-run Phillips curve shifts from A to B to C to D,policymakers face: A) the same tradeoff between inflation and unemployment. B) a lower rate of inflation for any level of unemployment. C) a higher rate of inflation for any level of unemployment. D) higher than expected inflation rates and lower unemployment rates.
-(Exhibit: Short-run Phillips Curve) As the short-run Phillips curve shifts from A to B to C to D,policymakers face:


A) the same tradeoff between inflation and unemployment.
B) a lower rate of inflation for any level of unemployment.
C) a higher rate of inflation for any level of unemployment.
D) higher than expected inflation rates and lower unemployment rates.

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