A story from HYPERLINK "http://www.ft.com/" www.ft.com (1/31/2005) describing Ireland's transformation to a prosperous economy noted that "Ireland's story is unique: a small, English- speaking, non- industrialised country on the edge of Europe was able to secure structural funds from the EU, cut taxes, deregulate faster than its neighbours and attract lots of foreign companies in the process."
If the natural rate of unemployment in Ireland decreased as a result of these policies, then _ shift .

Question

Quizplus · Accepted Answer

The policies described in the story resulted in a decrease in the natural rate of unemployment in Ireland. This would shift both the short-run and long-run Phillips curves leftward, as there would be a lower level of unemployment associated with any given level of inflation.

A Story from HYPERLINK "Http://www