Multiple Choice
If a government managed to reduce the time inconsistency problem by mandating that the central bank target inflation at a low rate,then
A) the long-run Phillips curve would shift right.
B) the long-run Phillips curve would shift left.
C) the short-run Phillips curve would shift up.
D) the short-run Phillips curve would shift down.
Correct Answer:
Verified
Correct Answer:
Verified
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