Multiple Choice
If inflation expectations change, a contractionary fiscal policy causes
A) the long-run Phillips curve to shift.
B) the short-run Phillips curve to shift.
C) the short-run Phillips curve to remain constant.
D) a movement along the short-run Phillips curve.
Correct Answer:

Verified
Correct Answer:
Verified
Q138: The economy experiences both a _ price
Q139: Refer to the information provided in Figure
Q140: Other things equal, the unemployment rate falls
Q141: Explicit contracts help explain the existence of
Q142: In the classical view of the labor
Q144: Refer to the information provided in Figure
Q145: Refer to the information provided in Figure
Q146: Frictional unemployment is the type that arises
Q147: Refer to the information provided in Figure
Q148: If the _ curve shifts from year