A story from www.ft.com 1/31/2005) describing Irelandʹs transformation to a prosperous economy noted that ʺIrelandʹs story is unique: a small, English-speaking, non-industrialized 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.ʺ
If the natural rate of unemployment in Ireland decreased as a result of these policies, then _________would shift _________.

Question

A story from www.ft.com 1/31/2005)  describing Irelandʹs transformation to a prosperous economy noted that ʺIrelandʹs story is unique: a small, English-speaking, non-industrialized 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.ʺ
If the natural rate of unemployment in Ireland decreased as a result of these policies, then _________would shift _________.

Quizplus · Accepted Answer

The policies described in the article would lead to a decrease in the natural rate of unemployment, which would shift both the long-run and short-run Phillips curves leftward.

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